CSLB Practice Test Questions and Answers(A+ Solution guide)

The costs of running your business, including office expenses, etc., is called: a. Direct Costs b. Overhead c. A liability d. Accrual - Answer-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 - Answer-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. b. Someone who installs mobile-homes c. Someone who digs wells on the property of others d. Sale or installation of finished products that do not become a fixed part of the structure - Answerd. Sale or installation of finished products that do not become a fixed part of the structure 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. - Answer-c. Twenty-Day Preliminary NoticePrime 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 - Answer-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 - Answer-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 - Answer-b. 4-years