Download California Contractors License Test: Key Questions and Answers and more Exams Law in PDF only on Docsity! California Contractors License Test Class Questions with correct answers Who does not need a contractors License? CORRECT ANSWER someone who does certain construction on commercial agricultural property The contractor surety Bond necessary for most contractors to obtain their license is in the amount of CORRECT ANSWER $15,000 When licensed as a Sole Proprietor the license belongs to CORRECT ANSWER the Company Which is true of an inactive license? CORRECT ANSWER Must be renewed every 4 Years How many classifications can an RME apply for? CORRECT ANSWER As many classifications as he or she can qualify for. A prime contractor shall pay his or her subcontractors CORRECT ANSWER within 7 days of receipt of each progress payment A contractor wants to use a fictitious name as a business name style. When does the fictitious name statement needed to be filed? CORRECT ANSWER Before conducting Business During a declared state of emergency how much may a contractor increase his prices? CORRECT ANSWER 10%above the price just prior to the declared state of emergency. If John Burroughs the sole proprietor of a pluming company is applying for a license as am individual, which of the following name styles is not permitted? CORRECT ANSWER permitted: John Burroughs Burroughs Plumbing Co. J.B. Co. Not-Permitted: John Burroughs Inc. Active licenses must be registered every------ and inactive licenses should be registered every----- CORRECT ANSWER 2 years, 4 years After you pass the state license test what should you do in order to receive an active license number? CORRECT ANSWER Pay your registration fees. Submit a complete asbestos open book examination. Show proof of workers comp insurance or submit a waiver of workers comp and submit your "pass" letter. Which of the following may qualify for more than one contractors license? CORRECT ANSWER Sole proprietor. How many classifications may a qualifier add to a license? CORRECT ANSWER As many qualifications as he qualifies for. which of the following may be protected by a Contract Bond? CORRECT ANSWER -A client damaged by the contractors violation of the contract. -Any person damaged by contractor fraud -Any contractor damaged by contractors failure to pay wages. What is the best way for the homeowner to protect his property from having a lien placed on his property, when signing a Home improvement contract. CORRECT Unless a larger typeface is specified in the law (Business and professions Code) text in any printed form should be: CORRECT ANSWER 10-pt Typeface and the headers should be at least 10-pt Boldface The costs of running your business including office expenses etc, is called: CORRECT ANSWER Overhead expenses Direct Labor is compromised of: CORRECT ANSWER cost for labor and payroll taxes Which of the following is an asset in the Balance sheet? CORRECT ANSWER Accounts Receivable Direct Costs Consist of: CORRECT ANSWER Direct Labor, Direct labor burden, direct materials and other direct costs. Good Cash Flow is achieved when: CORRECT ANSWER current liabilities are less than current assets Equity is: CORRECT ANSWER Total assets less total liabilities Networking Capital is: CORRECT ANSWER the difference between current assets and current liabilities A contractor is preparing a bid for repairs and the contractor estimates his direct costs to b $1,000. the contractor knows that his overhead is 25% and the contractor wants a 5% profit the contractor should submit a bid for: CORRECT ANSWER $1,428.57 (1,000/.70) a contractor estimates labor and materials to be $2,500. Allowing for 15% overhead and 5% profit. what should the total bid be? CORRECT ANSWER $3,125 (2,500/.8) When business is bad which of the following CORRECT ANSWER Bid on jobs only if you can make a profit Unresolved conflicts will result in extra costs and loss time for which of the following? CORRECT ANSWER the client, contractor, and state. If you're working in a DIFICULT phase of a project and the owner comes to you with a complaint about the windows you have installed what do you do? CORRECT ANSWER Stop what you are doing and deal with the owners complaint Subcontractors are selected on the basis of ------------. CORRECT ANSWER their availability to perform the job well, on time and their cost. Which of the following best helps the contractor bring together materials and labor at the proper time? CORRECT ANSWER Critical Path Method What is the advantage to always using the same method to calculate your bid? CORRECT ANSWER it saves time If you are working on a CRITICAL phase of a project and the owner comes to you with a complaint about he windows you have installed, what do you do? CORRECT ANSWER Acknowledge the complaint and tell the owner you'll be right with him as soon as you're finished with what you are working on.
