Utah General Contractor's Course -
Business and Law Exam Prep 2025
Questions and Answers 100% pass
Which business organization is regulated the least by the government? - ✔✔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
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
,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
It is a good idea to research business names through the ___________ website to
avoid creating a business name that is too similar to another registered name. -
✔✔Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible for
the debts of the business, and this debt responsibility is not limited to the percentage
of ownership. - ✔✔True
If a corporation is eligible to be taxed as a partnership and chooses to take this
option, it is referred to as ___________________. - ✔✔S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. - ✔✔Mission Statement
Identifying probable customers and attracting them to your product or service is
known as _______________. - ✔✔Marketing
The Construction Services Commission shall be comprised of ______ members. -
✔✔nine
Which of the following is NOT required from an applicant before being issued a
license? - ✔✔proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
_____ hours of approved continuing education. - ✔✔6
Contractor licenses are issued on a _____ renewal cycle. - ✔✔2 year
If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. - ✔✔True
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
, A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - ✔✔all of the above
Can an independent contractor be a qualifier for a business entity? - ✔✔no
The division must be notified within _______ days, in writing, that a qualifying
officer has ceased association with a company. - ✔✔10
If a qualifying person leaves a company, the license will remain active for ______ . -
✔✔60 days
A home owner who builds three residential structures in a five year period is still
exempt from licensing requirements. - ✔✔True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - ✔✔False
If the total value of a project is greater than $_______, the builder shall file with the
division a one-time affirmation. - ✔✔$1,000
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
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
Business and Law Exam Prep 2025
Questions and Answers 100% pass
Which business organization is regulated the least by the government? - ✔✔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
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
,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
It is a good idea to research business names through the ___________ website to
avoid creating a business name that is too similar to another registered name. -
✔✔Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible for
the debts of the business, and this debt responsibility is not limited to the percentage
of ownership. - ✔✔True
If a corporation is eligible to be taxed as a partnership and chooses to take this
option, it is referred to as ___________________. - ✔✔S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. - ✔✔Mission Statement
Identifying probable customers and attracting them to your product or service is
known as _______________. - ✔✔Marketing
The Construction Services Commission shall be comprised of ______ members. -
✔✔nine
Which of the following is NOT required from an applicant before being issued a
license? - ✔✔proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
_____ hours of approved continuing education. - ✔✔6
Contractor licenses are issued on a _____ renewal cycle. - ✔✔2 year
If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. - ✔✔True
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
, A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - ✔✔all of the above
Can an independent contractor be a qualifier for a business entity? - ✔✔no
The division must be notified within _______ days, in writing, that a qualifying
officer has ceased association with a company. - ✔✔10
If a qualifying person leaves a company, the license will remain active for ______ . -
✔✔60 days
A home owner who builds three residential structures in a five year period is still
exempt from licensing requirements. - ✔✔True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - ✔✔False
If the total value of a project is greater than $_______, the builder shall file with the
division a one-time affirmation. - ✔✔$1,000
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
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
