CALIFORNIA QUALIFIED MANAGER EXAM 2026 QUESTIONS AND CORRECT ANSWERS GRADED A+, Exams of Business Economics

CALIFORNIA QUALIFIED MANAGER EXAM 2026 QUESTIONS AND CORRECT ANSWERS GRADED A+

Typology: Exams

2025/2026

Available from 05/13/2026

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CALIFORNIA QUALIFIED MANAGER EXAM
2026 QUESTIONS AND CORRECT ANSWERS
GRADED A+
Corporation
4.5
What type of entity does a California-based private security company need to be?
When it's impossible to send mail to the physical address or when the address is the
PPO owner's primary residence.
4.5
When can you use a PO Box as the business mailing address?
A Branch Office Certificate (BOC) (BPC 7582.21)
5.3
What do you need when you conduct business anywhere but the office listed on
BSIS records?
BPC 7582.21
5.3 Branch Offices
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CALIFORNIA QUALIFIED MANAGER EXAM

2026 QUESTIONS AND CORRECT ANSWERS

GRADED A+

Corporation

What type of entity does a California-based private security company need to be? When it's impossible to send mail to the physical address or when the address is the PPO owner's primary residence.

When can you use a PO Box as the business mailing address? A Branch Office Certificate (BOC) (BPC 7582.21)

What do you need when you conduct business anywhere but the office listed on BSIS records? BPC 7582. 5.3 Branch Offices

What is BPC that requires you to obtain a BOC when conducting business outside the listed address on BSIS records? Commercial Liability Insurance, Workers' Compensation Insurance, and Business vehicle insurance 6.0 Insurance Requirements What are the three insurance requirements for PPOs? $1,000,000 commercial liability insurance policy. $500,000 for property damages and $500,000 for bodily injuries 6.1 Commercial General Liability What is the minimum limit of commercial liability insurance for a PPO offering armed security services? When you hire one or more employees. It's recommended to get the insurance policy now so when you need to hire employees you don't need to wait on the policy. 6.2 Workers' Compensation Policy When do you need a workers' compensation policy?

16 hours of electives (First aid, firearms, baton, de-escalation, diversity) 10.2 Cont. Training How many hours of training must they complete within six months of placing a security officer on a post? guard card, driver's license, and social security card or birth certificate 10.3 Hiring Security Officer When hiring a new security officer, what documents do you need? Every two years (BPC 7583.2) 10.3 Hiring Security Officer How often does a security officer need to renew their guard card? 4 hours 10.7 Chemical Agents How many hours of training is required to obtain OC permit?

To protect consumers from mal business practices

What is the purpose of the Department of Consumer Affairs? To regulate private patrol operators

What is the purpose of the Bureau of Security & Investigative Services? To manage day to day operations

What is the purpose of the qualified manager? The owner of the private security company

Who is the private patrol operator?

10.8 Baton How many hours of training is required to obtain a baton permit? 16 hours 10.10 Firearm How many hours of training are required to obtain an exposed firearms permit? 24 hours 10.10.5 Reportable Events When a security officer discharges a firearm, within how many days must they report the incident to the PPO? 7 days 10.10.5 Reportable Events When a security officer discharges a firearm, within how many days must the PPO report the incident to BSIS? 7 days

10.10.5 Reportable Events When a security officer discharges a firearm, within how many days must the PPO submit a report to the local PD? Insurance companies will not insure, ofc needs medical marijuana card, facilitating the manufacturing, selling, dispensing, and distribution, and federal crime for any controlled substance user to possess gun 10.10.7 Marijuana Dispensaries What are the challenges with contracting services to marijuana dispensaries? BPC 7574 is newer legislation allowing businesses to continue to operate an in- house security force. BPC 7574 requires a person or business that has one or more employees who provide security services for the employer and only the employer to register as a PSSE (Proprietary Private Security Employer). 11.1 Proprietary Security Services Act What is the Proprietary Security Services Act? A Proprietary Security Service Employer can hire one or more employees for security, but the employees must register with BSIS as a PSO (Proprietary Security Officer). PSSE is not allowed to perform work for more than one different organization. 11.1 Proprietary Security Services Act

Security officers are not allowed to detain people. The exception is under merchant privilege. You must have an agreement with every single tenant to act on their behalf. 12.7 Merchant Privilege What is merchant privilege? PPO is allowed to investigate incidents about loss, theft, embezzlement, misappropriation, or concealment of property hired to protect. However, PPO would need a private investigator license to investigate anything else outside this scope. 12.8 Investigative Authority What is the limit to any PPOs investigation authority? Authority-employer policy allows security officers to search employee bags before leaving the store. Whether officer is searching employees or customer's bags, officer needs to be looking for items belonging to the client (shrinkage) and not for unrelated stolen items. 13.2 Authority - Employer Policy What is authority-employer Policy? When there is imminent danger to our own life or someone else life 14.4 Lethal Force

When is lethal force justified? For state law, you may not require or demand an employee or applicant to take a lie detector test. If you give applicants in writing their right to refuse taking a lie detector test =, then you may give employees a test. If you are engaging in interstate commerce, the law allows private security firms to use polygraphs. If you engage in interstate commerce, you have a workplace theft incident, and you have reasonable suspicion to believe your officer is a suspect, you can have him submit to a polygraph. 15.2 Lie Detector Tests When are you allowed to conduct lie detector test? For current employees, I would not drug test unless: reasonable suspicion officer is under the influence, or clear & present danger to coworkers/public, or if officer is granted opportunity to test at a second facility. 15.6 Alcohol & Drug Testing When to conduct alcohol & drug testing? Paid for all hours worked, Paid OT, rest & meal breaks, sick leave, reimbursements, accurate wage statements 16.1 Employee Rights

12 hours and all hours worked in excess of 8 ours on seventh consecutive days of work. 16.4 Pay Considerations What are some pay considerations? When you have more than 50 employees working full time, you need to offer affordable medical benefits. Medical benefits are considered "affordable" when cost does not exceed 9.56% of employee's household income. Health insurance coverage to at least 95% of full time employees ($2,320 fine per employee, but first 30 not included). Small Business Health Option Program (SHOP) coverage should be offered only to full time employees. 16.5 Affordable Care Act What is the purpose for the Affordable Care Act? Law requires employers to allow full time and part time employees up to three days of sick leave per year. 16.6 Sick Leave Benefits What kind of sick leave benefits should employees have? Direct, random, electronic clock, and electronic surveillance 17.0 Supervision

What are four supervision techniques? An employer is responsible for the wrong doings of his employees. Respondeat Superior (BPC 7582.15) a licensee shall at all times be legally responsible for the good conduct in the business of each of their employees, including manager. 17.1 Vicarious Liability What is vicarious liability? The most desirable supervision technique is direct supervision ideally. The supervisor is able to address any concerns within a matter of minutes because the supervisor is on property. Accessible to client, someone for client to hold accountable, officer less likely to engage in misconduct. For every 5 to 7 officers, you should have one supervisor. 17.2 Direct Supervision Why is direct supervision the most desirable supervisory technique? The second most desirable supervisor technique. Supervisor arrives on site unannounced and the anticipation of an unannounced inspection will give employee the impression they will be held accountable any hour of the shift. The goal is not to catch the officer sleeping, but to ensure the the contract is performed as agreed. 17.3 Random Inspections

18.0 Discipline What should be the first thing you do after you purchase a policy manual? Training Perspective 18.2 Training & Retraining The intent of any disciplinary action comes from a ________________ __________________. Training-related questions 18.2 Training & Retraining When an employee commits a minor working infraction, ask _____________ ______________ ______________. When an employee cant fix the minor workplace infraction with training and retraining, then its time to step it up a notch to a memorandum or oral reprimand. 18.3 Counseling Memorandums & Oral Reprimands When is it appropriate to use a memorandum or oral reprimand?

Memorandum 3 Elements:

  1. What work place infraction was committed?
  2. What employee will do to avoid committing another infraction (corrective action).
  3. What will happen if employee commits another similar workplace infraction. 18.3 Counseling Memorandums & Oral Reprimands What are the three elements to write in a memorandum? 6 months to 1 year 18.3 Counseling Memorandums & Oral Reprimands After disciplining an em[loyee, how long should you wait to destroy memos when an employee stays out of trouble? To prevent lawsuit from employee claiming discipline was arbitrary. 18.4 Written Reprimand Why is it so crucial for reprimands to be written records tracking employee misconduct? To prevent negligence lawsuit from client for employing troubled employee
  • memos
  • written reprimands
  • suspension
  • demotion
  • termination 18.7 Termination What is the progressive dicipline leading to termination?
  1. state and federal taxes
  2. social security taxes
  3. medicare tax
  4. honor wage garnishments 19.1 Payroll Deduction When you hire an officer, what must you withhold from each paycheck?
  5. insurance premiums
  6. deductions authorized to cover
  7. union dues
  8. retirement plan
  9. medical insurance plans
  10. payments on a loan
  1. any other deductions benefiting the employee 19.1 Payroll Deduction What are you allowed to deduct from employee checks?
  2. uniforms (unless employee fails to return the uniform & agreed in writing)
  3. business expenses
  4. medical or physical exams
  5. gratuities
  6. loss of equipment unless willfully lost gear
  7. customary tools or equipment to do the job 19.1 Payroll Deduction What are you NOT allowed to deduct from employee checks? seven 19.2 Payroll Periods Pay officer within ________ days of payroll period ending. Termination = immediately
  • final check