©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
Utah General Contractor's Course - Business and Law
Exam Prep Questions and Answers (100% Pass)
Which business organization is regulated the least by the government? -
Answer✔️✔️-Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the
percentage of the company they own. - Answer✔️✔️-false
What business organization provides the most financial protection for the owners?
- Answer✔️✔️-Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
Answer✔️✔️-false
Can a corporation actually be listed as the sole owner of a property? - Answer✔️✔️-
yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. - Answer✔️✔️-false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. - Answer✔️✔️-false
1
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
Start-up and operating costs must be considered when creating a ____________ . -
Answer✔️✔️-financial plan
A _________ provides potential investors with a concrete description of your
successes and qualifications. - Answer✔️✔️-business plan
A _______________ combines the liability protection of a corporation with the
favorable tax treatment of a partnership or sole proprietorship. - Answer✔️✔️-LLC
_____________ have a partner who contributes funds and or property to the
business, but does not provide any services or have any say in the day to day
business. - Answer✔️✔️-Limited Partnerships
It is a good idea to research business names through the ___________ website to
avoid creating a business name that is too similar to another registered name. -
Answer✔️✔️-Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible
for the debts of the business, and this debt responsibility is not limited to the
percentage of ownership. - Answer✔️✔️-True
If a corporation is eligible to be taxed as a partnership and chooses to take this
option, it is referred to as ___________________. - Answer✔️✔️-S Corporation
2
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. - Answer✔️✔️-Mission
Statement
Identifying probable customers and attracting them to your product or service is
known as _______________. - Answer✔️✔️-Marketing
The Construction Services Commission shall be comprised of ______ members. -
Answer✔️✔️-nine
Which of the following is NOT required from an applicant before being issued a
license? - Answer✔️✔️-proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
_____ hours of approved continuing education. - Answer✔️✔️-6
Contractor licenses are issued on a _____ renewal cycle. - Answer✔️✔️-2 year
If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. - Answer✔️✔️-True
A contractor license number must be attached to which of the following?
1 permit applications
3
, ©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
2 bids (when a license is required)
3 contracts
4 all of the above - Answer✔️✔️-all of the above
Can an independent contractor be a qualifier for a business entity? - Answer✔️✔️-no
The division must be notified within _______ days, in writing, that a qualifying
officer has ceased association with a company. - Answer✔️✔️-10
If a qualifying person leaves a company, the license will remain active for ______ .
- Answer✔️✔️-60 days
A home owner who builds three residential structures in a five year period is still
exempt from licensing requirements. - Answer✔️✔️-True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - Answer✔️✔️-False
If the total value of a project is greater than $_______, the builder shall file with
the division a one-time affirmation. - Answer✔️✔️-$1,000
Does a contractor working on a project valued at $2,500, who has filed a one-time
affirmation with the division, have to show proof of public liability insurance? -
Answer✔️✔️-Yes
4
Utah General Contractor's Course - Business and Law
Exam Prep Questions and Answers (100% Pass)
Which business organization is regulated the least by the government? -
Answer✔️✔️-Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the
percentage of the company they own. - Answer✔️✔️-false
What business organization provides the most financial protection for the owners?
- Answer✔️✔️-Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
Answer✔️✔️-false
Can a corporation actually be listed as the sole owner of a property? - Answer✔️✔️-
yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. - Answer✔️✔️-false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. - Answer✔️✔️-false
1
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
Start-up and operating costs must be considered when creating a ____________ . -
Answer✔️✔️-financial plan
A _________ provides potential investors with a concrete description of your
successes and qualifications. - Answer✔️✔️-business plan
A _______________ combines the liability protection of a corporation with the
favorable tax treatment of a partnership or sole proprietorship. - Answer✔️✔️-LLC
_____________ have a partner who contributes funds and or property to the
business, but does not provide any services or have any say in the day to day
business. - Answer✔️✔️-Limited Partnerships
It is a good idea to research business names through the ___________ website to
avoid creating a business name that is too similar to another registered name. -
Answer✔️✔️-Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible
for the debts of the business, and this debt responsibility is not limited to the
percentage of ownership. - Answer✔️✔️-True
If a corporation is eligible to be taxed as a partnership and chooses to take this
option, it is referred to as ___________________. - Answer✔️✔️-S Corporation
2
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. - Answer✔️✔️-Mission
Statement
Identifying probable customers and attracting them to your product or service is
known as _______________. - Answer✔️✔️-Marketing
The Construction Services Commission shall be comprised of ______ members. -
Answer✔️✔️-nine
Which of the following is NOT required from an applicant before being issued a
license? - Answer✔️✔️-proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
_____ hours of approved continuing education. - Answer✔️✔️-6
Contractor licenses are issued on a _____ renewal cycle. - Answer✔️✔️-2 year
If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. - Answer✔️✔️-True
A contractor license number must be attached to which of the following?
1 permit applications
3
, ©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
2 bids (when a license is required)
3 contracts
4 all of the above - Answer✔️✔️-all of the above
Can an independent contractor be a qualifier for a business entity? - Answer✔️✔️-no
The division must be notified within _______ days, in writing, that a qualifying
officer has ceased association with a company. - Answer✔️✔️-10
If a qualifying person leaves a company, the license will remain active for ______ .
- Answer✔️✔️-60 days
A home owner who builds three residential structures in a five year period is still
exempt from licensing requirements. - Answer✔️✔️-True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - Answer✔️✔️-False
If the total value of a project is greater than $_______, the builder shall file with
the division a one-time affirmation. - Answer✔️✔️-$1,000
Does a contractor working on a project valued at $2,500, who has filed a one-time
affirmation with the division, have to show proof of public liability insurance? -
Answer✔️✔️-Yes
4
