CALIFORNIA CONTRACTORS
LICENSE TEST CLASS QUESTIONS
AND ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT !!!
Question 1: Under what condition is an individual generally exempt from needing
a contractor's license?
A) When performing specific construction work on commercial agricultural
property ✔️✔️
B) When remodeling a residential kitchen valued under $100,000
C) When working as an independent subcontractor on a public works project
D) When building a new detached garage for a commercial property
Question 2: What is the required dollar amount for the contractor surety bond that
most applicants must secure to obtain their license?
A) $5,000
B) $10,000
C) $15,000 ✔️✔️
D) $25,000
Question 3: When a contractor's license is issued under a Sole Proprietorship, who
officially owns the license?
A) The individual business owner
B) The Company ✔️✔️
C) The state licensing board
D) The qualifying manager
, Question 4: Which of the following statements accurately describes the
regulations regarding an inactive contractor's license?
A) It remains valid indefinitely without any paperwork
B) It must be renewed every 4 years ✔️✔️
C) It must be renewed annually on the date of issuance
D) It cannot be reactivated once placed on inactive status
Question 5: What is the maximum number of license classifications that a
Responsible Managing Employee (RME) is allowed to apply for?
A) Only one classification at a time
B) A maximum of three related classifications
C) As many classifications as he or she can qualify for. ✔️✔️
) No more than five distinct trade classifications
Question 6: Following the receipt of a progress payment, what is the maximum
timeframe allowed for a prime contractor to pay their subcontractors?
A) Within 24 hours of receiving the funds
B) Within 7 days of receipt of each progress payment ✔️✔️
C) Within 14 business days of the invoice date
D) Within 30 days of the project completion phase
A contractor wants to use a fictitious name as a business name style. When does
the fictitious name statement needed to be filed? -ANSWER ✔️✔️Before conducting
Business
LICENSE TEST CLASS QUESTIONS
AND ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT !!!
Question 1: Under what condition is an individual generally exempt from needing
a contractor's license?
A) When performing specific construction work on commercial agricultural
property ✔️✔️
B) When remodeling a residential kitchen valued under $100,000
C) When working as an independent subcontractor on a public works project
D) When building a new detached garage for a commercial property
Question 2: What is the required dollar amount for the contractor surety bond that
most applicants must secure to obtain their license?
A) $5,000
B) $10,000
C) $15,000 ✔️✔️
D) $25,000
Question 3: When a contractor's license is issued under a Sole Proprietorship, who
officially owns the license?
A) The individual business owner
B) The Company ✔️✔️
C) The state licensing board
D) The qualifying manager
, Question 4: Which of the following statements accurately describes the
regulations regarding an inactive contractor's license?
A) It remains valid indefinitely without any paperwork
B) It must be renewed every 4 years ✔️✔️
C) It must be renewed annually on the date of issuance
D) It cannot be reactivated once placed on inactive status
Question 5: What is the maximum number of license classifications that a
Responsible Managing Employee (RME) is allowed to apply for?
A) Only one classification at a time
B) A maximum of three related classifications
C) As many classifications as he or she can qualify for. ✔️✔️
) No more than five distinct trade classifications
Question 6: Following the receipt of a progress payment, what is the maximum
timeframe allowed for a prime contractor to pay their subcontractors?
A) Within 24 hours of receiving the funds
B) Within 7 days of receipt of each progress payment ✔️✔️
C) Within 14 business days of the invoice date
D) Within 30 days of the project completion phase
A contractor wants to use a fictitious name as a business name style. When does
the fictitious name statement needed to be filed? -ANSWER ✔️✔️Before conducting
Business
