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The costs of running your business, including office expenses, etc., is called: a. Direct Costs b. Overhead c. A liability d. Accrual - Correct 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 - Correct 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 - Correct Answer ✅d. 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. - Correct Answer ✅c. Twenty-Day Preliminary Notice Prime 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 - Correct 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:
How many classifications can a Responsible Managing Employee apply for? a. One b. Two c. None d. As many as the RME can qualify for - Correct Answer ✅d. As many as the RME can qualify for If a contractor includes a provision in a contract for the use of private arbitration and a dispute between the owner and the contractor makes arbitration necessary, who will bear the cost of the private arbitration? a. The California Contractor's License Board b. The property owner c. The prime contractor d. The property owner and the prime contractor will split the cost of the private arbitration - Correct Answer ✅d. The property owner and the prime contractor will split the cost of the private arbitration State Disability Insurance is paid by: a. Employees only
b. Employers only c. Both employers and employees d. Neither employers nor employees - Correct Answer ✅a. Employees only A contractor estimates labor and materials costs for a job to be $2,500.00. Allowing for 15% overhead and 18% profit, what should the total bid be? a. $3,222. b. $3,731. c. $3,018. d. $3,825.00 - Correct Answer ✅b. $3,731. Who is responsible for determining when the project is complete? a. The prime contractor b. The building inspector c. The subcontractor d. The owner or his/her agent - Correct Answer ✅d. The owner or his/her agent
d. None of the above - Correct Answer ✅c. State Board of Equalization During a declared state of emergency how much may a contractor increase his/her prices? a. Contractor is not allowed to increase prices at all. b. 15% above the prices just prior to the declared state of emergency c. As much as the client is willing to pay d. 10% above the price just prior to the declared state of emergency - Correct Answer ✅d. 10% above the price just prior to the declared state of emergency Which of the following would be protected by a Contract Bond? a. A client damaged by the contractor's violation of the contract b. Any person damaged by contractor fraud c. Any person damaged by a contractor's failure to pay wages d. All of the above - Correct Answer ✅d. All of the above A Stop Notice is a? a. Lien on the funds
b. A notice to stop the work c. A required legal notice that the Prime contractor sends to the property owner, agent, or lender. d. None of the above - Correct Answer ✅a. Lien on the funds A new-hire will fill out an _____ form to verify their employment eligibility status. a. 1099 b. DE- c. US- d. I-9 - Correct Answer ✅d. I- If an employee quits, wages are due within ____ hours. a. 24-hours b. 48-hours c. Immediately d. 72-hours - Correct Answer ✅d. 72-hours A strike is when ___% or more of the employees legally refuse to perform their work.
Which of the following may qualify for more than one active California Contractor's License? a. 10% Partner b. Sole Proprietor c. RME d. RMO with 15% ownership - Correct Answer ✅b. Sole Proprietor Which is true of an inactive license? a. Is given to retired contractors b. Must be renewed every 4-years c. The contractor can only contract for jobs under $ d. Is given to contractors who lose their license - Correct Answer ✅b. Must be renewed every 4-years Which of the following is an asset on a Balance Sheet? a. Accounts Receivable b. Accounts Payable c. Equity d. Income - Correct Answer ✅a. Accounts Receivable
DOSH issues permits for digging trenches ____ft or more deep. a. 24 b. 12 c. 6 d. 5 - Correct Answer ✅d. 5 If Robert, the sole proprietor of a painting company, applying for a license as an individual, which of the following name-styles is not permitted by the California State License Board? a. Robert Burroughs b. Robert C. Burroughs Co. c. Burroughs Painting Co. d. Robert Burroughs, INC. - Correct Answer ✅d. Robert Burroughs, INC. Who is responsible for providing the homeowner a copy of the "Notice of Cancellation"? a. The subcontractor b. The registrar of contractors
b. 8 c. 12 d. 24 - Correct Answer ✅b. 8 Access guidelines for persons with disabilities are found in Title ___ of the CA Code of Regulations. a. Title 2 b. Title 8 c. Title 24 d. All of the above. - Correct Answer ✅c. Title 24 Direct Labor burden is comprised of: a. payroll expenses b. expenses charged to overhead c. cost for labor and payroll taxes d. cost of payroll taxes, insurances, and benefits - Correct Answer ✅d. cost of payroll taxes, insurances, and benefits By law, the maximum hours in a day a minor may work on a non-school day is:
a. 6 b. 7 c. 8 d. 4 - Correct Answer ✅c. 8 A contractor must provide the homeowner who contracts for a home improvement project with a? a. Mechanic's Lien Warning b. List of material suppliers c. Copy of all insurance documents d. List of other projects completed - Correct Answer ✅a. Mechanic's Lien Warning For which projects do you need a building permit? a. You always need a building permit. b. When it is a public works project c. When it is required by the local building department d. For projects valued over $1,000.00 - Correct Answer ✅c. When it is required by the local building department
