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NEVADA BUSINESS AND LAW EXAM COMPLETE
300 QUESTIONS WITH DETAILED SOLUTIONS
JUST RELEASED THIS YEAR
Nevada Business and Law Exam – 300 Randomized Practice Questions
Exam Overview: The Nevada Business and Law Exam (Contractor Management Survey/CMS) is
administered by PSI on behalf of the Nevada State Contractors Board (NSCB). The exam
contains 60 questions with a 120-minute time limit, and a 75% (45/60) is required to pass. The
exam is open-book; you may use the Construction Business and Law Manual for Nevada as a
reference. Candidates are allowed three attempts to pass; failure on the third attempt voids the
application with a 30-day waiting period to reapply. Key coverage areas include licensing
requirements, business organization, contract law, lien law, insurance and bonding, labor laws,
tax obligations, financial management, and safety regulations.
Question 1: A contractor enters into a written agreement with a homeowner for a kitchen
remodel describing the scope of work, materials, total price of $30,000, and signatures of both
parties. This document is best described as what?
A) A surety bond
B) A contract
C) A permit
D) A preliminary notice
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Answer: B A contract defines the scope of work, terms, and responsibilities of the parties and is
the primary document governing a construction project.
Question 2: The Nevada State Contractors Board (NSCB) has what primary authority?
A) To promote contractor businesses
B) To enforce local building codes
C) To license and regulate contractors
D) To manage OSHA compliance
Answer: C The NSCB issues licenses, enforces contractor laws, and regulates the construction
industry to protect the public.
Question 3: A corporation wishes to form a legally recognized business entity in Nevada. What
is the first required step?
A) Obtain a federal tax ID number
B) Hold an initial shareholder meeting
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C) File articles of incorporation with the Secretary of State
D) Publish notice of formation in a local newspaper
Answer: C In Nevada, a corporation is legally recognized once the articles of incorporation are
filed with the Secretary of State.
Question 4: Which Nevada statute establishes the Nevada State Contractors Board and defines
its powers?
A) NRS 108
B) NRS 624
C) NRS 617
D) NRS 631
Answer: B NRS Chapter 624 (Contractors) is the primary statute that creates the NSCB and
defines its powers, including licensing, discipline, and enforcement.
Question 5: How many members serve on the Nevada State Contractors Board?
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A) 5
B) 7
C) 9
D) 11
Answer: B NRS 624.030 specifies seven members: four licensed contractors and three public
members appointed by the Governor.
Question 6: A quorum of the Nevada State Contractors Board requires at least how many
members?
A) 3
B) 4
C) 5
D) 7
Answer: B A quorum is a simple majority of the full seven-member board, which is four
members.
4
SUCCESS!
NEVADA BUSINESS AND LAW EXAM COMPLETE
300 QUESTIONS WITH DETAILED SOLUTIONS
JUST RELEASED THIS YEAR
Nevada Business and Law Exam – 300 Randomized Practice Questions
Exam Overview: The Nevada Business and Law Exam (Contractor Management Survey/CMS) is
administered by PSI on behalf of the Nevada State Contractors Board (NSCB). The exam
contains 60 questions with a 120-minute time limit, and a 75% (45/60) is required to pass. The
exam is open-book; you may use the Construction Business and Law Manual for Nevada as a
reference. Candidates are allowed three attempts to pass; failure on the third attempt voids the
application with a 30-day waiting period to reapply. Key coverage areas include licensing
requirements, business organization, contract law, lien law, insurance and bonding, labor laws,
tax obligations, financial management, and safety regulations.
Question 1: A contractor enters into a written agreement with a homeowner for a kitchen
remodel describing the scope of work, materials, total price of $30,000, and signatures of both
parties. This document is best described as what?
A) A surety bond
B) A contract
C) A permit
D) A preliminary notice
1
SUCCESS!
,Page 2 of 147
Answer: B A contract defines the scope of work, terms, and responsibilities of the parties and is
the primary document governing a construction project.
Question 2: The Nevada State Contractors Board (NSCB) has what primary authority?
A) To promote contractor businesses
B) To enforce local building codes
C) To license and regulate contractors
D) To manage OSHA compliance
Answer: C The NSCB issues licenses, enforces contractor laws, and regulates the construction
industry to protect the public.
Question 3: A corporation wishes to form a legally recognized business entity in Nevada. What
is the first required step?
A) Obtain a federal tax ID number
B) Hold an initial shareholder meeting
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C) File articles of incorporation with the Secretary of State
D) Publish notice of formation in a local newspaper
Answer: C In Nevada, a corporation is legally recognized once the articles of incorporation are
filed with the Secretary of State.
Question 4: Which Nevada statute establishes the Nevada State Contractors Board and defines
its powers?
A) NRS 108
B) NRS 624
C) NRS 617
D) NRS 631
Answer: B NRS Chapter 624 (Contractors) is the primary statute that creates the NSCB and
defines its powers, including licensing, discipline, and enforcement.
Question 5: How many members serve on the Nevada State Contractors Board?
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A) 5
B) 7
C) 9
D) 11
Answer: B NRS 624.030 specifies seven members: four licensed contractors and three public
members appointed by the Governor.
Question 6: A quorum of the Nevada State Contractors Board requires at least how many
members?
A) 3
B) 4
C) 5
D) 7
Answer: B A quorum is a simple majority of the full seven-member board, which is four
members.
4
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