Utah General Contractor's Course - Business and Law Exam
Prep-Questions with Correct Answers/ Verified/ 100% Pass
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
Prep-Questions with Correct Answers/ Verified/ 100% Pass
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
