CSLB Practice Test/39 Exam
Questions and answers
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual - -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 - -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 - -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. - -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 - -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 - -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 - -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 - -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 - -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 - -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
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