CSLB BUSINESS AND LAW EXAM 2025 | VERIFIED
QUESTIONS & CORRECT ANSWERS | A+ GRADED –
LATEST VERSION
1-2% - CORRECT ANSWER ✅✅✅Bonds can be purchased from bonding
companies for ___% of the original contract price.
Bid Bond - CORRECT ANSWER ✅✅✅This acts as an assurance that the
contractor will be able to complete the job as described in the contract.
Performance Bond or Contract Bond - CORRECT ANSWER ✅✅✅This
guarantees a contractor will complete the project according to the agreed
upon terms & conditions.
Payment Bond - CORRECT ANSWER ✅✅✅This guarantees that
subcontractors and suppliers will be paid by the contractor for properly
performed work.
$35,000 - CORRECT ANSWER ✅✅✅Payment Bonds are required for federal
government contracts over $__________.
Fidelity Bond - CORRECT ANSWER ✅✅✅This covers the business owner in
case of employee dishonesty or theft.
$15,000 - CORRECT ANSWER ✅✅✅Contractors must file a contractors
bond OR submit a cash deposit with the CSLB for $_______.
,$15,000 - CORRECT ANSWER ✅✅✅The value of a contractors bond must
be $________
90 - CORRECT ANSWER ✅✅✅The contractors bond must be filed with the
CLSB within ___ days from the bond effective date.
True - CORRECT ANSWER ✅✅✅True or False: A contractor must identify
their type of insurance when referring to themselves as "bonded" or "insured"
in advertisements or publications.
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more
of the voting stock in the company.) - CORRECT ANSWER ✅✅✅A business
must submit a separate $________ bond for RMEs or RMOs.
$100,000 - CORRECT ANSWER ✅✅✅A Limited Liability Surety Bond for
$__________ is required in addition to the contractors bond for an LLC license.
Disciplinary Bond - CORRECT ANSWER ✅✅✅This must be filed with the
Registrar after a license has been revoked or denied.
False. It's an additional requirement and may not be filed in place of another
bond. - CORRECT ANSWER ✅✅✅True or False: A Disciplinary Bond can be
combined with any other bond.
$15,000 up to 10x the amount of the contractor's bond - CORRECT ANSWER
✅✅✅The Disciplinary bond amount ranges from _______ to _______,
depending on the violation.
2 years - CORRECT ANSWER ✅✅✅The Disciplinary Bond must be valid &
on file with the Registrar for how long?
, Within 90 days - CORRECT ANSWER ✅✅✅How soon should the
Disciplinary bond be filed with the CSLB?
C) Stocks or fluctuating investments - CORRECT ANSWER ✅✅✅All of these
are approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
D) All of the above - CORRECT ANSWER ✅✅✅A license may be suspended
if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for
the required time period
D) All of the above
Proof of worker's compensation insurance - CORRECT ANSWER ✅✅✅What
must a contractor submit before a contractor's license is issued?
QUESTIONS & CORRECT ANSWERS | A+ GRADED –
LATEST VERSION
1-2% - CORRECT ANSWER ✅✅✅Bonds can be purchased from bonding
companies for ___% of the original contract price.
Bid Bond - CORRECT ANSWER ✅✅✅This acts as an assurance that the
contractor will be able to complete the job as described in the contract.
Performance Bond or Contract Bond - CORRECT ANSWER ✅✅✅This
guarantees a contractor will complete the project according to the agreed
upon terms & conditions.
Payment Bond - CORRECT ANSWER ✅✅✅This guarantees that
subcontractors and suppliers will be paid by the contractor for properly
performed work.
$35,000 - CORRECT ANSWER ✅✅✅Payment Bonds are required for federal
government contracts over $__________.
Fidelity Bond - CORRECT ANSWER ✅✅✅This covers the business owner in
case of employee dishonesty or theft.
$15,000 - CORRECT ANSWER ✅✅✅Contractors must file a contractors
bond OR submit a cash deposit with the CSLB for $_______.
,$15,000 - CORRECT ANSWER ✅✅✅The value of a contractors bond must
be $________
90 - CORRECT ANSWER ✅✅✅The contractors bond must be filed with the
CLSB within ___ days from the bond effective date.
True - CORRECT ANSWER ✅✅✅True or False: A contractor must identify
their type of insurance when referring to themselves as "bonded" or "insured"
in advertisements or publications.
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more
of the voting stock in the company.) - CORRECT ANSWER ✅✅✅A business
must submit a separate $________ bond for RMEs or RMOs.
$100,000 - CORRECT ANSWER ✅✅✅A Limited Liability Surety Bond for
$__________ is required in addition to the contractors bond for an LLC license.
Disciplinary Bond - CORRECT ANSWER ✅✅✅This must be filed with the
Registrar after a license has been revoked or denied.
False. It's an additional requirement and may not be filed in place of another
bond. - CORRECT ANSWER ✅✅✅True or False: A Disciplinary Bond can be
combined with any other bond.
$15,000 up to 10x the amount of the contractor's bond - CORRECT ANSWER
✅✅✅The Disciplinary bond amount ranges from _______ to _______,
depending on the violation.
2 years - CORRECT ANSWER ✅✅✅The Disciplinary Bond must be valid &
on file with the Registrar for how long?
, Within 90 days - CORRECT ANSWER ✅✅✅How soon should the
Disciplinary bond be filed with the CSLB?
C) Stocks or fluctuating investments - CORRECT ANSWER ✅✅✅All of these
are approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
D) All of the above - CORRECT ANSWER ✅✅✅A license may be suspended
if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for
the required time period
D) All of the above
Proof of worker's compensation insurance - CORRECT ANSWER ✅✅✅What
must a contractor submit before a contractor's license is issued?
