LOUISIANA BUSINESS AND LAW
QUESTIONS & ANSWERS(RATED A+)
The purpose of the contractor licensing laws is to - ANSWERProtect the public from
fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential duplex, tri-
plex, or four-plex. - ANSWERCommercial project
A contractor is a person that works on a project valued at ______ or more for
commercial purposes other than residential duplexes, tri-plexes or four-plexes. -
ANSWER$50,000
A ___________ is the person who contracts directly with the owner. -
ANSWERGeneral contractor
A contractor that works on a preexisting owner occupied building is considered a
_________ . - ANSWERHome improvement contractor
A residential contractor is one who constructs a fixed structure when the cost
exceeds _________. - ANSWER$75,000
The state licensing board is comprised of ____ members. - ANSWER15
The board has the power to do any of the following EXCEPT: - ANSWERSue
unlicensed contractors
Licenses and renewals expire on _______. - ANSWERThe anniversary date the
license was issued
An applicant must furnish the board with proof of financial responsibility including
proof of net worth of at least ______ . - ANSWER$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? -
ANSWERyes
When a qualifying party of a construction company leaves employment, the company
has how many days to inform the board? - ANSWER30 days
A qualifying party can be which of the following: - ANSWERA co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
, An owner of a property who is improving their home for their own use does not have
to have a license to do construction work. - ANSWERTrue
If you fail to comply with the rules of the board, you are subject to revocation or
suspension of your license. - ANSWERTrue
If you have been found guilty of violating the rules of the board more than twice in
one year, you will not be permitted to bid on a public project for up to ____ years -
ANSWER3
If a license has been denied by the board, the applicant has ____ to appeal. -
ANSWER6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up
to ________. - ANSWER$500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300,
they can be fined up to ______ and possibly be imprisoned up to _____ . -
ANSWER$5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so, that
contractor shall not be permitted to apply for a license for ___________ . -
ANSWER1 year
A residential contractor must provide all of the following EXCEPT: - ANSWERProof
of five years experience
If a contract is valued at $75,000, what percentage of that amount will an owner
require a contractor to provide as a bond? - ANSWER50%
Like the Notice of Contract, the Notice of Termination is designed to protect owners
as it shortens the time in which liens must be filed. - ANSWERTrue
If a company has Current Assets of $115,000, Fixed Assets of $257,250, Current
Liabilities of $27,350 and Fixed Liabilities of $187,258, what is its Liquidity Ratio? -
ANSWER4.2 to 1
A contractor who opts to place his license in an inactive status must still submit proof
of insurance coverage. - ANSWERFalse
Residential contractors must pay a renewal fee of _____. - ANSWER$100.00
Residential contractors must pay a license fee of _____. - ANSWER$100.00
A home improvement project , in excess of _______ MUST have a written contract
between the contractor and the owner. - ANSWER$7,500
A home improvement contractor is required to register with the Residential Building
Contractors Subcommittee. - ANSWERTrue
QUESTIONS & ANSWERS(RATED A+)
The purpose of the contractor licensing laws is to - ANSWERProtect the public from
fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential duplex, tri-
plex, or four-plex. - ANSWERCommercial project
A contractor is a person that works on a project valued at ______ or more for
commercial purposes other than residential duplexes, tri-plexes or four-plexes. -
ANSWER$50,000
A ___________ is the person who contracts directly with the owner. -
ANSWERGeneral contractor
A contractor that works on a preexisting owner occupied building is considered a
_________ . - ANSWERHome improvement contractor
A residential contractor is one who constructs a fixed structure when the cost
exceeds _________. - ANSWER$75,000
The state licensing board is comprised of ____ members. - ANSWER15
The board has the power to do any of the following EXCEPT: - ANSWERSue
unlicensed contractors
Licenses and renewals expire on _______. - ANSWERThe anniversary date the
license was issued
An applicant must furnish the board with proof of financial responsibility including
proof of net worth of at least ______ . - ANSWER$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? -
ANSWERyes
When a qualifying party of a construction company leaves employment, the company
has how many days to inform the board? - ANSWER30 days
A qualifying party can be which of the following: - ANSWERA co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
, An owner of a property who is improving their home for their own use does not have
to have a license to do construction work. - ANSWERTrue
If you fail to comply with the rules of the board, you are subject to revocation or
suspension of your license. - ANSWERTrue
If you have been found guilty of violating the rules of the board more than twice in
one year, you will not be permitted to bid on a public project for up to ____ years -
ANSWER3
If a license has been denied by the board, the applicant has ____ to appeal. -
ANSWER6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up
to ________. - ANSWER$500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300,
they can be fined up to ______ and possibly be imprisoned up to _____ . -
ANSWER$5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so, that
contractor shall not be permitted to apply for a license for ___________ . -
ANSWER1 year
A residential contractor must provide all of the following EXCEPT: - ANSWERProof
of five years experience
If a contract is valued at $75,000, what percentage of that amount will an owner
require a contractor to provide as a bond? - ANSWER50%
Like the Notice of Contract, the Notice of Termination is designed to protect owners
as it shortens the time in which liens must be filed. - ANSWERTrue
If a company has Current Assets of $115,000, Fixed Assets of $257,250, Current
Liabilities of $27,350 and Fixed Liabilities of $187,258, what is its Liquidity Ratio? -
ANSWER4.2 to 1
A contractor who opts to place his license in an inactive status must still submit proof
of insurance coverage. - ANSWERFalse
Residential contractors must pay a renewal fee of _____. - ANSWER$100.00
Residential contractors must pay a license fee of _____. - ANSWER$100.00
A home improvement project , in excess of _______ MUST have a written contract
between the contractor and the owner. - ANSWER$7,500
A home improvement contractor is required to register with the Residential Building
Contractors Subcommittee. - ANSWERTrue
