Contractors Law Exam CA Practice Test:
Licensing Requirements
Which of the following will potentially require a business license?
A. The Internal Revenue Service
B. The Contractors State License Board
C. The Department of Industrial Relations
D. Any city or county where the contractor is working - Answer-D. Any city or county where the
contractor is working
Which of the following is not a form of advertising?
A. Business cards
B. Radio ads
C. Lunch meets
D. Contract proposal - Answer-C. Lunch meets
If an employee is injured when the contractor's license was suspended or revoked, then what happens
to the contractor?
A. The contractor may face a lawsuit for damages
, B. The contractor will lose his license permanently
C. The contractor will be fined $10,000
D. The contractor will have to pay to the injured employee a full pay until he recovers - Answer-A. The
contractor may face a lawsuit for damages
An expired license may be renewed anytime within _____ after its expiration date.
A. 5 years
B. 3 years
C. 2 years
D. 60 days - Answer-A. 5 years
James wishes to qualify for more than one active license at a time. According to the Contractors' License
Law, he must own at least ____ of the equity for each business where he serves as the qualifying
individual.
A. 20%
B. 25%
C. 50%
D. 100% - Answer-A. 20%
A contractor's license will be valid if:
A. It is backdated
B. It is renewed by the expiration date
C. It is renewed within 5 years after expiration
Licensing Requirements
Which of the following will potentially require a business license?
A. The Internal Revenue Service
B. The Contractors State License Board
C. The Department of Industrial Relations
D. Any city or county where the contractor is working - Answer-D. Any city or county where the
contractor is working
Which of the following is not a form of advertising?
A. Business cards
B. Radio ads
C. Lunch meets
D. Contract proposal - Answer-C. Lunch meets
If an employee is injured when the contractor's license was suspended or revoked, then what happens
to the contractor?
A. The contractor may face a lawsuit for damages
, B. The contractor will lose his license permanently
C. The contractor will be fined $10,000
D. The contractor will have to pay to the injured employee a full pay until he recovers - Answer-A. The
contractor may face a lawsuit for damages
An expired license may be renewed anytime within _____ after its expiration date.
A. 5 years
B. 3 years
C. 2 years
D. 60 days - Answer-A. 5 years
James wishes to qualify for more than one active license at a time. According to the Contractors' License
Law, he must own at least ____ of the equity for each business where he serves as the qualifying
individual.
A. 20%
B. 25%
C. 50%
D. 100% - Answer-A. 20%
A contractor's license will be valid if:
A. It is backdated
B. It is renewed by the expiration date
C. It is renewed within 5 years after expiration
