Utah General Contractor's Course -
Business and Law Exam Prep
Which business organization is regulated the least by the government? - ✔✔-
Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to
the percentage of the company they own. - ✔✔- false
What business organization provides the most financial protection for the
owners? - ✔✔- Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
✔✔- false
Can a corporation actually be listed as the sole owner of a property? - ✔✔- yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. - ✔✔- false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. - ✔✔- false
Start-up and operating costs must be considered when creating a ____________
. - ✔✔- financial plan
A _________ provides potential investors with a concrete description of your
successes and qualifications. - ✔✔- business plan
A _______________ combines the liability protection of a corporation with the
favorable tax treatment of a partnership or sole proprietorship. - ✔✔- LLC
_____________ have a partner who contributes funds and or property to the
business, but does not provide any services or have any say in the day to day
business. - ✔✔- Limited Partnerships
,It is a good idea to research business names through the ___________ website
to avoid creating a business name that is too similar to another registered name.
- ✔✔- Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible
for the debts of the business, and this debt responsibility is not limited to the
percentage of ownership. - ✔✔- True
If a corporation is eligible to be taxed as a partnership and chooses to take this
option, it is referred to as ___________________. - ✔✔- S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. - ✔✔- Mission
Statement
Identifying probable customers and attracting them to your product or service is
known as _______________. - ✔✔- Marketing
The Construction Services Commission shall be comprised of ______ members.
- ✔✔- nine
Which of the following is NOT required from an applicant before being issued a
license? - ✔✔- proof of incorporation
Each contractor licensee under a license issued under this chapter shall
complete _____ hours of approved continuing education. - ✔✔- 6
Contractor licenses are issued on a _____ renewal cycle. - ✔✔- 2 year
If a license has been suspended, the applicant must resolve any and all
outstanding fines, citations and judgements. - ✔✔- True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
, 4 all of the above - ✔✔- all of the above
Can an independent contractor be a qualifier for a business entity? - ✔✔- no
The division must be notified within _______ days, in writing, that a qualifying
officer has ceased association with a company. - ✔✔- 10
If a qualifying person leaves a company, the license will remain active for ______
. - ✔✔- 60 days
A home owner who builds three residential structures in a five year period is still
exempt from licensing requirements. - ✔✔- True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - ✔✔- False
If the total value of a project is greater than $_______, the builder shall file with
the division a one-time affirmation. - ✔✔- $1,000
Does a contractor working on a project valued at $2,500, who has filed a
one-time affirmation with the division, have to show proof of public liability
insurance? - ✔✔- Yes
Who is responsible for the investigation of persons and activities in violation of
the Utah Construction Trades Licensing Act? - ✔✔- the Division of
Occupational/Professional Licensing
Which of the following is not considered "unlawful"? - ✔✔- deliberate departure
from plans or specifications
Which of the following is considered "unprofessional conduct"?
1 Failing to establish, maintain, or demonstrate financial responsibility while
licensed as a contractor
2 Allowing one's license to be used by another
3 Failure to complete a project without the consent of the owner
4 both a and c - ✔✔- 4 both a and c
Business and Law Exam Prep
Which business organization is regulated the least by the government? - ✔✔-
Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to
the percentage of the company they own. - ✔✔- false
What business organization provides the most financial protection for the
owners? - ✔✔- Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
✔✔- false
Can a corporation actually be listed as the sole owner of a property? - ✔✔- yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. - ✔✔- false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. - ✔✔- false
Start-up and operating costs must be considered when creating a ____________
. - ✔✔- financial plan
A _________ provides potential investors with a concrete description of your
successes and qualifications. - ✔✔- business plan
A _______________ combines the liability protection of a corporation with the
favorable tax treatment of a partnership or sole proprietorship. - ✔✔- LLC
_____________ have a partner who contributes funds and or property to the
business, but does not provide any services or have any say in the day to day
business. - ✔✔- Limited Partnerships
,It is a good idea to research business names through the ___________ website
to avoid creating a business name that is too similar to another registered name.
- ✔✔- Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible
for the debts of the business, and this debt responsibility is not limited to the
percentage of ownership. - ✔✔- True
If a corporation is eligible to be taxed as a partnership and chooses to take this
option, it is referred to as ___________________. - ✔✔- S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. - ✔✔- Mission
Statement
Identifying probable customers and attracting them to your product or service is
known as _______________. - ✔✔- Marketing
The Construction Services Commission shall be comprised of ______ members.
- ✔✔- nine
Which of the following is NOT required from an applicant before being issued a
license? - ✔✔- proof of incorporation
Each contractor licensee under a license issued under this chapter shall
complete _____ hours of approved continuing education. - ✔✔- 6
Contractor licenses are issued on a _____ renewal cycle. - ✔✔- 2 year
If a license has been suspended, the applicant must resolve any and all
outstanding fines, citations and judgements. - ✔✔- True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
, 4 all of the above - ✔✔- all of the above
Can an independent contractor be a qualifier for a business entity? - ✔✔- no
The division must be notified within _______ days, in writing, that a qualifying
officer has ceased association with a company. - ✔✔- 10
If a qualifying person leaves a company, the license will remain active for ______
. - ✔✔- 60 days
A home owner who builds three residential structures in a five year period is still
exempt from licensing requirements. - ✔✔- True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - ✔✔- False
If the total value of a project is greater than $_______, the builder shall file with
the division a one-time affirmation. - ✔✔- $1,000
Does a contractor working on a project valued at $2,500, who has filed a
one-time affirmation with the division, have to show proof of public liability
insurance? - ✔✔- Yes
Who is responsible for the investigation of persons and activities in violation of
the Utah Construction Trades Licensing Act? - ✔✔- the Division of
Occupational/Professional Licensing
Which of the following is not considered "unlawful"? - ✔✔- deliberate departure
from plans or specifications
Which of the following is considered "unprofessional conduct"?
1 Failing to establish, maintain, or demonstrate financial responsibility while
licensed as a contractor
2 Allowing one's license to be used by another
3 Failure to complete a project without the consent of the owner
4 both a and c - ✔✔- 4 both a and c
