Contractor (B) License Exam | complete
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Which of the following is required before a contractor can
legally bid on a project in California?
a) City business license only
b) Contractor’s license issued by CSLB
c) Local union membership
d) Bond approval from the client
Correct answer: b) Contractor’s license issued by CSLB
Which of the following is the minimum contractor’s bond
amount required by the California CSLB?
a) $5,000
b) $10,000
c) $15,000
,d) $25,000
Correct answer: c) $15,000
A prime contractor on a public works project must pay
workers:
a) Federal minimum wage
b) California minimum wage only
c) Prevailing wage rates
d) Salaries negotiated with employees
Correct answer: c) Prevailing wage rates
Which of the following is NOT a responsibility of the
qualifying individual (RMO/RME) on a contractor’s license?
a) Supervise construction operations
b) Ensure compliance with codes
c) Provide workers’ compensation insurance
d) Direct construction activities
Correct answer: c) Provide workers’ compensation
insurance
,If a contractor wants to operate under a different business
name, they must:
a) Submit a name change request to CSLB
b) Only notify clients
c) Register a new license immediately
d) File an IRS business form only
Correct answer: a) Submit a name change request to CSLB
Which of the following is the maximum down payment a
contractor may legally request for a home improvement
contract in California?
a) 10% of contract price or $1,000, whichever is less
b) 25% of contract price
c) 50% of contract price
d) No restrictions
Correct answer: a) 10% of contract price or $1,000,
whichever is less
, Which of the following is the primary purpose of the
Mechanics’ Lien law?
a) Protect homeowners from contractors
b) Ensure subcontractors and suppliers are paid
c) Eliminate contract disputes
d) Guarantee contractor profits
Correct answer: b) Ensure subcontractors and suppliers
are paid
In a lump-sum contract, the contractor agrees to:
a) Perform work with no profit
b) Accept payment for actual time and materials
c) Complete the project for a fixed total price
d) Charge per unit installed
Correct answer: c) Complete the project for a fixed total
price
Which organization regulates contractor licenses in
California?