CSLB GENERAL B PRACTICE QUESTIONS
FINAL PAPER CERTIFICATION
EVALUATION PRACTICE SOLUTION
ACTUAL TEST BANK 100 PERCENT
CORRECT
⩥ Which business entity allows its owners to report income as
personal income while enjoying limited liability?
Answer: LLC
⩥ What is the purpose of a mechanics lien
Answer: To ensure payment for labor or materials used in a
project.
⩥ What financial statement summarizes a company's assets,
liabilities, and equity.
Answer: Balance sheet
⩥ What is the penalty for failing to secure workers'
compensation insurance for employees?
, Answer: Stop order to halt all work, fines up to $100,000, and
misdemeanor criminal charges.
⩥ Under California law, how long does a homeowner have to
cancel a home improvement contract if they are over 65 years
old?
Answer: 5 "business" days without penalty or obligation.
⩥ How often must a contractor renew their license in
California?
Answer: Every 2 years.
⩥ What type of insurance is mandatory for all limited liability
companies (LLCs) in California?
Answer: Commercial general liability insurance valued at $1
million dollars.
⩥ What is the monetary fine for an unlicensed contractor acting
as a contractor in California?
Answer: $200 and up to $15,000
FINAL PAPER CERTIFICATION
EVALUATION PRACTICE SOLUTION
ACTUAL TEST BANK 100 PERCENT
CORRECT
⩥ Which business entity allows its owners to report income as
personal income while enjoying limited liability?
Answer: LLC
⩥ What is the purpose of a mechanics lien
Answer: To ensure payment for labor or materials used in a
project.
⩥ What financial statement summarizes a company's assets,
liabilities, and equity.
Answer: Balance sheet
⩥ What is the penalty for failing to secure workers'
compensation insurance for employees?
, Answer: Stop order to halt all work, fines up to $100,000, and
misdemeanor criminal charges.
⩥ Under California law, how long does a homeowner have to
cancel a home improvement contract if they are over 65 years
old?
Answer: 5 "business" days without penalty or obligation.
⩥ How often must a contractor renew their license in
California?
Answer: Every 2 years.
⩥ What type of insurance is mandatory for all limited liability
companies (LLCs) in California?
Answer: Commercial general liability insurance valued at $1
million dollars.
⩥ What is the monetary fine for an unlicensed contractor acting
as a contractor in California?
Answer: $200 and up to $15,000
