Nevada Business And Law Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2025
Q&A | Instant Download Pdf
1. What is the minimum number of years a contractor's records must be
kept in Nevada?
4 years
2 years
6 years
10 years
Contractors are required to retain business records for at least 4
years per Nevada law.
2. Which of the following business structures provides the least personal
liability protection?
Sole proprietorship
Corporation
LLC
, Limited partnership
A sole proprietorship does not separate business and personal
liability, exposing personal assets.
3. A general contractor must provide a disclosure statement to the
owner for contracts exceeding:
$5,000
$10,000
$25,000
$50,000
Nevada law mandates a disclosure statement for contracts
exceeding $25,000 to protect homeowners.
4. How often must Nevada contractors renew their license?
Every year
Every 2 years
Every 3 years
Every 5 years
Nevada contractors are required to renew their licenses biennially.
5. Which Nevada agency regulates and licenses contractors?
Department of Labor
Department of Business and Industry
Nevada State Contractors Board
, Secretary of State
The Nevada State Contractors Board oversees licensing and
regulation of contractors.
6. If a contractor is convicted of a felony, they must notify the board
within:
30 days
10 days
15 days
90 days
Contractors must report a felony conviction to the board within 90
days.
7. What is the purpose of a surety bond for a Nevada contractor?
To protect consumers from financial harm due to a contractor’s
failure to meet obligations
To pay employees
To cover insurance
To secure loans
A surety bond provides financial protection for clients and ensures
contractor compliance.
8. The primary purpose of OSHA is to:
Protect consumer rights
Ensure safe and healthful working conditions
Manage workers' compensation
, Oversee tax filings
OSHA promotes workplace safety standards and enforcement.
9. What is the minimum workers’ compensation insurance requirement
in Nevada?
For companies with 10+ employees
For companies with 5+ employees
For any employee, even one
Only if employees work more than 40 hours/week
Nevada law requires workers' compensation for any business with at
least one employee.
10. When must a preliminary notice be served to secure lien rights?
After project completion
Within 31 days of first furnishing labor or materials
Before signing contract
Within 10 days of receiving payment
A timely preliminary notice preserves lien rights in Nevada.
11. Who is responsible for reporting use tax in Nevada?
Clients
Material suppliers
Contractors
Subcontractors
Contractors are responsible for use tax when purchasing materials
out-of-state without paying Nevada sales tax.
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2025
Q&A | Instant Download Pdf
1. What is the minimum number of years a contractor's records must be
kept in Nevada?
4 years
2 years
6 years
10 years
Contractors are required to retain business records for at least 4
years per Nevada law.
2. Which of the following business structures provides the least personal
liability protection?
Sole proprietorship
Corporation
LLC
, Limited partnership
A sole proprietorship does not separate business and personal
liability, exposing personal assets.
3. A general contractor must provide a disclosure statement to the
owner for contracts exceeding:
$5,000
$10,000
$25,000
$50,000
Nevada law mandates a disclosure statement for contracts
exceeding $25,000 to protect homeowners.
4. How often must Nevada contractors renew their license?
Every year
Every 2 years
Every 3 years
Every 5 years
Nevada contractors are required to renew their licenses biennially.
5. Which Nevada agency regulates and licenses contractors?
Department of Labor
Department of Business and Industry
Nevada State Contractors Board
, Secretary of State
The Nevada State Contractors Board oversees licensing and
regulation of contractors.
6. If a contractor is convicted of a felony, they must notify the board
within:
30 days
10 days
15 days
90 days
Contractors must report a felony conviction to the board within 90
days.
7. What is the purpose of a surety bond for a Nevada contractor?
To protect consumers from financial harm due to a contractor’s
failure to meet obligations
To pay employees
To cover insurance
To secure loans
A surety bond provides financial protection for clients and ensures
contractor compliance.
8. The primary purpose of OSHA is to:
Protect consumer rights
Ensure safe and healthful working conditions
Manage workers' compensation
, Oversee tax filings
OSHA promotes workplace safety standards and enforcement.
9. What is the minimum workers’ compensation insurance requirement
in Nevada?
For companies with 10+ employees
For companies with 5+ employees
For any employee, even one
Only if employees work more than 40 hours/week
Nevada law requires workers' compensation for any business with at
least one employee.
10. When must a preliminary notice be served to secure lien rights?
After project completion
Within 31 days of first furnishing labor or materials
Before signing contract
Within 10 days of receiving payment
A timely preliminary notice preserves lien rights in Nevada.
11. Who is responsible for reporting use tax in Nevada?
Clients
Material suppliers
Contractors
Subcontractors
Contractors are responsible for use tax when purchasing materials
out-of-state without paying Nevada sales tax.
