LOUISIANA CONTRACTOR'S EXAM – BUSINESS AND LAW
PRACTICE Practice Exam – 200 Questions with Answers &
Rationales| INSTANT PDF DOWNLOAD
SECTION 1: BUSINESS STRUCTURES AND LIABILITY
1. The liability of the owner(s) extends not only to company assets but to personal
assets as well in which type of business structure?
A. Limited Liability Company (LLC)
B. Sole proprietorship
C. Corporation
D. Subchapter S corporation
Correct Answer: B
Rationale: In a sole proprietorship there is no legal separation between the business and
the owner, exposing personal assets to any business liability .
2. The form of business which is considered separate and apart from its owners
and continues to exist upon the death of one of its owners is a:
A. Sole proprietorship
B. Partnership
C. Joint venture
D. Corporation
Correct Answer: D
Rationale: A corporation is a separate legal entity from its owners and has perpetual
existence beyond the death of its shareholders .
,3. To create a Limited Liability Company in Louisiana, the Articles of Organization
must be filed with the Louisiana:
A. Division of Administration
B. Secretary of State
C. Department of Taxation and Revenue
D. Department of Economic Development
Correct Answer: B
Rationale: The Articles of Organization for an LLC must be filed with the Louisiana
Secretary of State .
4. In a limited partnership, which partner is active in the management of the firm
and has unlimited liability to its creditors?
A. Limited partner
B. General partner
C. Contributing partner
D. Silent partner
Correct Answer: B
Rationale: The general partner manages the business and bears unlimited liability for
partnership debts .
SECTION 2: LICENSING REQUIREMENTS AND REGULATIONS
5. What is the minimum project value that requires a contractor's license for
commercial work in Louisiana?
A. $10,000
B. $25,000
C. $50,000
D. $75,000
Correct Answer: C
Rationale: Under the Louisiana Contractor's Licensing Law, a contractor must be licensed
when working on a commercial project valued at $50,000 or more .
,6. Which type of license allows a contractor to perform work in multiple
specialties?
A. Residential
B. General
C. Specialty
D. Journeyman
Correct Answer: B
A general contractor license allows the licensee to oversee and perform work in multiple
areas or specialties .
7. What is the minimum net worth requirement for a Louisiana contractor license
applicant?
A. $5,000
B. $10,000
C. $25,000
D. $50,000
Correct Answer: B
The applicant must demonstrate a net worth of at least $10,000 or post an equivalent
bond .
8. Which government body regulates contractor licensing in Louisiana?
A. Department of Transportation
B. Louisiana State Licensing Board for Contractors (LSLBC)
C. Department of Labor
D. Louisiana Contractor Association
Correct Answer: B
The LSLBC oversees licensing, complaints, and enforcement for contractors in the state .
, 9. How long is a Louisiana contractor license valid before renewal?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Correct Answer: A
Licenses are valid for one year and expire on the anniversary of the original issue date .
10. What is the minimum age requirement to obtain a contractor license in
Louisiana?
A. 16
B. 18
C. 21
D. 25
Correct Answer: B
Applicants must be at least 18 years old to apply for a contractor license .
11. Which of the following is required for a contractor to legally operate in
Louisiana?
A. Liability insurance only
B. Workers' compensation only
C. Business registration and licensing
D. None of the above
Correct Answer: C
In Louisiana, contractors must have a valid state license and register their business with
the LSLBC before performing work .
12. From the time the Board receives the contractor's license application to the
time the license is issued, out-of-state applicants have a mandatory waiting period
PRACTICE Practice Exam – 200 Questions with Answers &
Rationales| INSTANT PDF DOWNLOAD
SECTION 1: BUSINESS STRUCTURES AND LIABILITY
1. The liability of the owner(s) extends not only to company assets but to personal
assets as well in which type of business structure?
A. Limited Liability Company (LLC)
B. Sole proprietorship
C. Corporation
D. Subchapter S corporation
Correct Answer: B
Rationale: In a sole proprietorship there is no legal separation between the business and
the owner, exposing personal assets to any business liability .
2. The form of business which is considered separate and apart from its owners
and continues to exist upon the death of one of its owners is a:
A. Sole proprietorship
B. Partnership
C. Joint venture
D. Corporation
Correct Answer: D
Rationale: A corporation is a separate legal entity from its owners and has perpetual
existence beyond the death of its shareholders .
,3. To create a Limited Liability Company in Louisiana, the Articles of Organization
must be filed with the Louisiana:
A. Division of Administration
B. Secretary of State
C. Department of Taxation and Revenue
D. Department of Economic Development
Correct Answer: B
Rationale: The Articles of Organization for an LLC must be filed with the Louisiana
Secretary of State .
4. In a limited partnership, which partner is active in the management of the firm
and has unlimited liability to its creditors?
A. Limited partner
B. General partner
C. Contributing partner
D. Silent partner
Correct Answer: B
Rationale: The general partner manages the business and bears unlimited liability for
partnership debts .
SECTION 2: LICENSING REQUIREMENTS AND REGULATIONS
5. What is the minimum project value that requires a contractor's license for
commercial work in Louisiana?
A. $10,000
B. $25,000
C. $50,000
D. $75,000
Correct Answer: C
Rationale: Under the Louisiana Contractor's Licensing Law, a contractor must be licensed
when working on a commercial project valued at $50,000 or more .
,6. Which type of license allows a contractor to perform work in multiple
specialties?
A. Residential
B. General
C. Specialty
D. Journeyman
Correct Answer: B
A general contractor license allows the licensee to oversee and perform work in multiple
areas or specialties .
7. What is the minimum net worth requirement for a Louisiana contractor license
applicant?
A. $5,000
B. $10,000
C. $25,000
D. $50,000
Correct Answer: B
The applicant must demonstrate a net worth of at least $10,000 or post an equivalent
bond .
8. Which government body regulates contractor licensing in Louisiana?
A. Department of Transportation
B. Louisiana State Licensing Board for Contractors (LSLBC)
C. Department of Labor
D. Louisiana Contractor Association
Correct Answer: B
The LSLBC oversees licensing, complaints, and enforcement for contractors in the state .
, 9. How long is a Louisiana contractor license valid before renewal?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Correct Answer: A
Licenses are valid for one year and expire on the anniversary of the original issue date .
10. What is the minimum age requirement to obtain a contractor license in
Louisiana?
A. 16
B. 18
C. 21
D. 25
Correct Answer: B
Applicants must be at least 18 years old to apply for a contractor license .
11. Which of the following is required for a contractor to legally operate in
Louisiana?
A. Liability insurance only
B. Workers' compensation only
C. Business registration and licensing
D. None of the above
Correct Answer: C
In Louisiana, contractors must have a valid state license and register their business with
the LSLBC before performing work .
12. From the time the Board receives the contractor's license application to the
time the license is issued, out-of-state applicants have a mandatory waiting period
