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CSLB Practice Test| 40 QUESTIONS| ANSWERS 100% CORRECT

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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...

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CSLB Practice Test| 40 QUESTIONS|
ANSWERS 100% CORRECT
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:

a. $2,500

, b. $7,000
c. $15,000
d. $25,000 Correct 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 Correct Answer: b. 4-years

In which of the following circumstances must a licensed contractor provide their license
number?

a. On all contracts
b. On all advertising
c. On all "20-day Preliminary Notices"
d. All of the above Correct Answer: d. All of the above

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?

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