2025 Latest Utah Contractor Business and Law Exam
With 250 Real Exam Prep Questions And Correct
Verified Answers| Utah Contractor Business And Law
Exam 2025 Qs With 100% Accurate Answers (New!)
All employers in Utah except sole proprietors or partners with no employees must
provide Workers' Compensation coverage.
True
How long should tax records be preserved in order to be examined by the Utah Tax
Commission?
3 years
Employers located inside of Utah who pay wages, and employers located outside
of Utah who pay wages to Utah residents, must register with the Utah State Tax
Commission to get a state withholding tax account.
True
A General Building contractor shall provide a license bond issued by a surety
acceptable to the Division in the amount of $_______ .
$50,000
Can a contractor ever provide a surety bond in an amount less than is typically
specified?
yes
Corporations in Utah are required to pay estimated tx if the tax liability for the
current year is $______ or more.
3,000
Utah public construction projects over $50,000 require __________ bonds to
ensure that plans and specifications will be followed, and that suppliers and
subcontractors are paid.
Payment
pg. 1
,Does a contractor working on a project valued at $2,500, who has filed a one-time
affirmation with the division, have to show proof of public liability insurance?
Yes
Who is responsible for the investigation of persons and activities in violation of the
Utah Construction Trades Licensing Act?
the Division of Occupational/Professional Licensing
Which of the following is not considered "unlawful"?
deliberate departure from plans or specifications
Which of the following is considered "unprofessional conduct"?
1 Failing to establish, maintain, or demonstrate financial responsibility while
licensed as a contractor
2 Allowing one's license to be used by another
3 Failure to complete a project without the consent of the owner
4 both a and c
4 both a and c
A contractor who submits a bid for a contract outside his/her license classification
may have their license immediately suspended.
True
If within ______ calendar days from the service of the citation, the person to whom
the citation was issued fails to request a hearing to contest the citation, the citation
becomes the final order.
20
A person who has violated the licensing laws of Utah one time could be fined up to
$_______ .
$1,000
Third time offenders can be fined up to $______ for each day of continued offense.
$2,000
Which of the following is qualified to perform construction for highways, water
supply, flood control and bridges?
pg. 2
,General Engineering Contractor
A Residential and Small Commercial Non-Structural Remodeler cannot perform
work on a project valued at more than $________ .
$50,000
A Residential and Small Commercial contractor may not perform construction on
buildings greater than _________ square feet.
20,000
Does a lead removal company need to have a contractor's license?
No
An applicant for licensure must pass both parts of the state exams with a passing
score of _____%.
70%
If you fail the first attempt at the examination, you must wait ____ days before
taking the test again.
30
A General Building Contractor applicant must be able to show proof of _____
years experience in the last 10 years.
4
A Residential and Commercial Building contractor applicant must show 4 years of
experience, ______ of which must be in a managerial or supervisory position.
2 years
Does a carpenter have to show proof of four years experience in order to become
licensed?
Yes
Each licensee shall complete a total of _______ hours of continuing education
during each two year license term.
6
Which business organization is regulated the least by the government?
pg. 3
, Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the
percentage of the company they own.
false
What business organization provides the most financial protection for the owners?
Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital.
false
Can a corporation actually be listed as the sole owner of a property?
yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies.
false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have.
false
Start-up and operating costs must be considered when creating a ____________ .
financial plan
A _________ provides potential investors with a concrete description of your
successes and qualifications.
business plan
A _______________ combines the liability protection of a corporation with the
favorable tax treatment of a partnership or sole proprietorship.
LLC
_____________ have a partner who contributes funds and or property to the
business, but does not provide any services or have any say in the day to day
business.
Limited Partnerships
pg. 4
With 250 Real Exam Prep Questions And Correct
Verified Answers| Utah Contractor Business And Law
Exam 2025 Qs With 100% Accurate Answers (New!)
All employers in Utah except sole proprietors or partners with no employees must
provide Workers' Compensation coverage.
True
How long should tax records be preserved in order to be examined by the Utah Tax
Commission?
3 years
Employers located inside of Utah who pay wages, and employers located outside
of Utah who pay wages to Utah residents, must register with the Utah State Tax
Commission to get a state withholding tax account.
True
A General Building contractor shall provide a license bond issued by a surety
acceptable to the Division in the amount of $_______ .
$50,000
Can a contractor ever provide a surety bond in an amount less than is typically
specified?
yes
Corporations in Utah are required to pay estimated tx if the tax liability for the
current year is $______ or more.
3,000
Utah public construction projects over $50,000 require __________ bonds to
ensure that plans and specifications will be followed, and that suppliers and
subcontractors are paid.
Payment
pg. 1
,Does a contractor working on a project valued at $2,500, who has filed a one-time
affirmation with the division, have to show proof of public liability insurance?
Yes
Who is responsible for the investigation of persons and activities in violation of the
Utah Construction Trades Licensing Act?
the Division of Occupational/Professional Licensing
Which of the following is not considered "unlawful"?
deliberate departure from plans or specifications
Which of the following is considered "unprofessional conduct"?
1 Failing to establish, maintain, or demonstrate financial responsibility while
licensed as a contractor
2 Allowing one's license to be used by another
3 Failure to complete a project without the consent of the owner
4 both a and c
4 both a and c
A contractor who submits a bid for a contract outside his/her license classification
may have their license immediately suspended.
True
If within ______ calendar days from the service of the citation, the person to whom
the citation was issued fails to request a hearing to contest the citation, the citation
becomes the final order.
20
A person who has violated the licensing laws of Utah one time could be fined up to
$_______ .
$1,000
Third time offenders can be fined up to $______ for each day of continued offense.
$2,000
Which of the following is qualified to perform construction for highways, water
supply, flood control and bridges?
pg. 2
,General Engineering Contractor
A Residential and Small Commercial Non-Structural Remodeler cannot perform
work on a project valued at more than $________ .
$50,000
A Residential and Small Commercial contractor may not perform construction on
buildings greater than _________ square feet.
20,000
Does a lead removal company need to have a contractor's license?
No
An applicant for licensure must pass both parts of the state exams with a passing
score of _____%.
70%
If you fail the first attempt at the examination, you must wait ____ days before
taking the test again.
30
A General Building Contractor applicant must be able to show proof of _____
years experience in the last 10 years.
4
A Residential and Commercial Building contractor applicant must show 4 years of
experience, ______ of which must be in a managerial or supervisory position.
2 years
Does a carpenter have to show proof of four years experience in order to become
licensed?
Yes
Each licensee shall complete a total of _______ hours of continuing education
during each two year license term.
6
Which business organization is regulated the least by the government?
pg. 3
, Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the
percentage of the company they own.
false
What business organization provides the most financial protection for the owners?
Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital.
false
Can a corporation actually be listed as the sole owner of a property?
yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies.
false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have.
false
Start-up and operating costs must be considered when creating a ____________ .
financial plan
A _________ provides potential investors with a concrete description of your
successes and qualifications.
business plan
A _______________ combines the liability protection of a corporation with the
favorable tax treatment of a partnership or sole proprietorship.
LLC
_____________ have a partner who contributes funds and or property to the
business, but does not provide any services or have any say in the day to day
business.
Limited Partnerships
pg. 4
