CSLB Practice Test Questions and
Answers A+ Graded (2025)
The .costs .of .running .your .business, .including .office .expenses, .etc., .is .called:
a. .Direct .Costs
b. .Overhead
c. .A .liability
d. .Accrual .- .CORRECT .ANSWER-b. .Overhead
Which .government .agency .collects .State .Unemployment .Tax?
a. .Employment .Development .Department
b. .County .Unemployment .Office
c. .Franchise .Tax .Board
d. .Internal .Revenue .Service .- .CORRECT .ANSWER-a. .Employment .Development
.Department
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 .- .CORRECT .ANSWER-d. .Sale .or .installation .of .finished .products
.that .do .not .become .a .fixed .part .of .the .structure
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. .- .CORRECT .ANSWER-c. .Twenty-Day .Preliminary .Notice
Prime .Contractor .must .pay .subcontractor .when?
a. .10-days .after .Prime-contractor .received .payment
b. .When .Prime-contractor .receives .withheld .retention .monies
c. .30-days .after .completion
, d. .As .soon .as .subcontractor .completes .the .work .- .CORRECT .ANSWER-a. .10-
days .after .Prime-contractor .received .payment
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 .- .CORRECT .ANSWER-c. .$15,000
How .long .with .the .CSLB .hold .a .contractor .responsible .for .observable .defects?
a. .5-years
b. .4-years
c. .3-years
d. .2-years .- .CORRECT .ANSWER-b. .4-years
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 .- .CORRECT .ANSWER-d. .All .of .the .above
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 .- .CORRECT .ANSWER-d. .As .many .as .the
.RME .can .qualify .for
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?
a. .The .California .Contractor's .License .Board
b. .The .property .owner
c. .The .prime .contractor
d. .The .property .owner .and .the .prime .contractor .will .split .the .cost .of .the .private
.arbitration .- .CORRECT .ANSWER-d. .The .property .owner .and .the .prime
.contractor .will .split .the .cost .of .the .private .arbitration
State .Disability .Insurance .is .paid .by:
a. .Employees .only
b. .Employers .only
Answers A+ Graded (2025)
The .costs .of .running .your .business, .including .office .expenses, .etc., .is .called:
a. .Direct .Costs
b. .Overhead
c. .A .liability
d. .Accrual .- .CORRECT .ANSWER-b. .Overhead
Which .government .agency .collects .State .Unemployment .Tax?
a. .Employment .Development .Department
b. .County .Unemployment .Office
c. .Franchise .Tax .Board
d. .Internal .Revenue .Service .- .CORRECT .ANSWER-a. .Employment .Development
.Department
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 .- .CORRECT .ANSWER-d. .Sale .or .installation .of .finished .products
.that .do .not .become .a .fixed .part .of .the .structure
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. .- .CORRECT .ANSWER-c. .Twenty-Day .Preliminary .Notice
Prime .Contractor .must .pay .subcontractor .when?
a. .10-days .after .Prime-contractor .received .payment
b. .When .Prime-contractor .receives .withheld .retention .monies
c. .30-days .after .completion
, d. .As .soon .as .subcontractor .completes .the .work .- .CORRECT .ANSWER-a. .10-
days .after .Prime-contractor .received .payment
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 .- .CORRECT .ANSWER-c. .$15,000
How .long .with .the .CSLB .hold .a .contractor .responsible .for .observable .defects?
a. .5-years
b. .4-years
c. .3-years
d. .2-years .- .CORRECT .ANSWER-b. .4-years
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 .- .CORRECT .ANSWER-d. .All .of .the .above
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 .- .CORRECT .ANSWER-d. .As .many .as .the
.RME .can .qualify .for
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?
a. .The .California .Contractor's .License .Board
b. .The .property .owner
c. .The .prime .contractor
d. .The .property .owner .and .the .prime .contractor .will .split .the .cost .of .the .private
.arbitration .- .CORRECT .ANSWER-d. .The .property .owner .and .the .prime
.contractor .will .split .the .cost .of .the .private .arbitration
State .Disability .Insurance .is .paid .by:
a. .Employees .only
b. .Employers .only