CSLB Practice Test
In which of the following circumstances must a licensed contractor provide their license
number?
a. On all contracts
b. On all advertising
c. On all "20-day Preliminary Notices"
d. All of the above - ✔️✔️d. All of the above
How many classifications can a Responsible Managing Employee apply for?
a. One
b. Two
c. None
d. As many as the RME can qualify for - ✔️✔️d. As many as the RME can qualify for
If a contractor includes a provision in a contract for the use of private arbitration and a
dispute between the owner and the contractor makes arbitration necessary, who will
bear the cost of the private arbitration?
a. The California Contractor's License Board
b. The property owner
c. The prime contractor
d. The property owner and the prime contractor will split the cost of the private
arbitration - ✔️✔️d. The property owner and the prime contractor will split the cost of
the private arbitration
State Disability Insurance is paid by:
a. Employees only
b. Employers only
c. Both employers and employees
d. Neither employers nor employees - ✔️✔️a. Employees only
A contractor estimates labor and materials costs for a job to be $2,500.00. Allowing for
15% overhead and 18% profit, what should the total bid be?
a. $3,222.00
b. $3,731.00
c. $3,018.00
d. $3,825.00 - ✔️✔️b. $3,731.00
Which of the following is not part of a Home-Improvement Contract?
, a. Mechanic's Lien Warning
b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above. - ✔️✔️c. Twenty-Day Preliminary Notice
Prime Contractor must pay subcontractor when?
a. 10-days after Prime-contractor received payment
b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work - ✔️✔️a. 10-days after Prime-
contractor received payment
The Contractor's Surety Bond is necessary for most contractors to obtain their license.
This bond is in the amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000 - ✔️✔️c. $15,000
How long with the CSLB hold a contractor responsible for observable defects?
a. 5-years
b. 4-years
c. 3-years
d. 2-years - ✔️✔️b. 4-years
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual - ✔️✔️b. Overhead
Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service - ✔️✔️a. Employment Development Department
Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump unit.
In which of the following circumstances must a licensed contractor provide their license
number?
a. On all contracts
b. On all advertising
c. On all "20-day Preliminary Notices"
d. All of the above - ✔️✔️d. All of the above
How many classifications can a Responsible Managing Employee apply for?
a. One
b. Two
c. None
d. As many as the RME can qualify for - ✔️✔️d. As many as the RME can qualify for
If a contractor includes a provision in a contract for the use of private arbitration and a
dispute between the owner and the contractor makes arbitration necessary, who will
bear the cost of the private arbitration?
a. The California Contractor's License Board
b. The property owner
c. The prime contractor
d. The property owner and the prime contractor will split the cost of the private
arbitration - ✔️✔️d. The property owner and the prime contractor will split the cost of
the private arbitration
State Disability Insurance is paid by:
a. Employees only
b. Employers only
c. Both employers and employees
d. Neither employers nor employees - ✔️✔️a. Employees only
A contractor estimates labor and materials costs for a job to be $2,500.00. Allowing for
15% overhead and 18% profit, what should the total bid be?
a. $3,222.00
b. $3,731.00
c. $3,018.00
d. $3,825.00 - ✔️✔️b. $3,731.00
Which of the following is not part of a Home-Improvement Contract?
, a. Mechanic's Lien Warning
b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above. - ✔️✔️c. Twenty-Day Preliminary Notice
Prime Contractor must pay subcontractor when?
a. 10-days after Prime-contractor received payment
b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work - ✔️✔️a. 10-days after Prime-
contractor received payment
The Contractor's Surety Bond is necessary for most contractors to obtain their license.
This bond is in the amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000 - ✔️✔️c. $15,000
How long with the CSLB hold a contractor responsible for observable defects?
a. 5-years
b. 4-years
c. 3-years
d. 2-years - ✔️✔️b. 4-years
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual - ✔️✔️b. Overhead
Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service - ✔️✔️a. Employment Development Department
Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump unit.
