CSLB Practice Test
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CSLB Practice Test Questions & With Correct Answers 2024/2025 ( A+
Graded 100% Verified)
1. The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual: b. Overhead
2. Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service: a. Employment Development Department
3. Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump
unit.
b. Someone who installs mobile-homes
c. Someone who digs wells on the property of others
d. Sale or installation of finished products that do not become a fixed part of the
structure: d. Sale or installation of finished products that do not become a fixed part
of the structure
4. Which of the following is not part of a Home-Improvement Contract?
a. Mechanic's Lien Warning
b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above.: c. Twenty-Day Preliminary Notice
e. 5. Prime Contractor must pay subcontractor when?
a. 10-days after Prime-contractor received payment
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b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work: a. 10-days after Prime-contractor
received payment
6. The Contractor's Surety Bond is necessary for most contractors to obtain their
license. This bond is in the amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000: c. $15,000
7. How long with the CSLB hold a contractor responsible for observable defects?
5-years
a. 4-years
b. 3-years
c. 2-years: b. 4-years
8. In which of the following circumstances must a licensed contractor provide their
license number?
a. On all contracts
b. On all advertising
c. On all "20-day Preliminary Notices"
d. All of the above: d. All of the above
9. How many classifications can a Responsible Managing Employee apply for? a.
One
b. Two
c. None
d. As many as the RME can qualify for: d. As many as the RME can qualify for
10. If a contractor includes a provision in a contract for the use of private
arbitration and a dispute between the owner and the contractor makes arbitration
necessary, who will bear the cost of the private arbitration?
2/8
Study online at https://quizlet.com/_73kbdz
CSLB Practice Test Questions & With Correct Answers 2024/2025 ( A+
Graded 100% Verified)
1. The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual: b. Overhead
2. Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service: a. Employment Development Department
3. Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump
unit.
b. Someone who installs mobile-homes
c. Someone who digs wells on the property of others
d. Sale or installation of finished products that do not become a fixed part of the
structure: d. Sale or installation of finished products that do not become a fixed part
of the structure
4. Which of the following is not part of a Home-Improvement Contract?
a. Mechanic's Lien Warning
b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above.: c. Twenty-Day Preliminary Notice
e. 5. Prime Contractor must pay subcontractor when?
a. 10-days after Prime-contractor received payment
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b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work: a. 10-days after Prime-contractor
received payment
6. The Contractor's Surety Bond is necessary for most contractors to obtain their
license. This bond is in the amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000: c. $15,000
7. How long with the CSLB hold a contractor responsible for observable defects?
5-years
a. 4-years
b. 3-years
c. 2-years: b. 4-years
8. In which of the following circumstances must a licensed contractor provide their
license number?
a. On all contracts
b. On all advertising
c. On all "20-day Preliminary Notices"
d. All of the above: d. All of the above
9. How many classifications can a Responsible Managing Employee apply for? a.
One
b. Two
c. None
d. As many as the RME can qualify for: d. As many as the RME can qualify for
10. If a contractor includes a provision in a contract for the use of private
arbitration and a dispute between the owner and the contractor makes arbitration
necessary, who will bear the cost of the private arbitration?
2/8
