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Business Organization & Licensing — California C-10 Practice Questions

30 questions · 13% of the Law & Business exam

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Answers and explanations for these are in the app.

  • A C-10 licensee is asked to perform unrelated structural remodeling as the only trade. What should be checked?
  • A contractor advertises under a name not associated with its CSLB record. What should happen?
  • A corporation signs a construction contract, but the qualifying officer signs only a personal nickname. What should the contract identify?
  • A qualifying individual lends a name to a company but exercises no supervision or control over construction operations. What is the issue?
  • A sole-owner licensee incorporates a new company. May the corporation automatically contract under the individual license?
  • A subcontract proposal displays a license number belonging to a different entity. What should the prime do?
  • Before signing a contract, why should the contractor confirm the entity license is active and properly classified?
  • May a contractor enter new contracts while its license is inactive?
  • The only qualifier leaves a licensed entity. What should management do first?
  • Two partners disagree about who may sign bids and borrow money for the contracting business. What should be established?
  • What identifying information is generally required in a licensed contractor’s construction advertising?
  • What should a responsible managing employee or officer be able to demonstrate?
  • Why should an LLC operating agreement define member and manager authority?
  • Why should corporate and personal funds and records be kept separate?
  • A C-36 contractor is offered a separate contract to alter structural beams with no plumbing component. Which licensing question comes first?
  • A contractor leaves its license inactive to save fees but signs two new construction contracts. May it enter those contracts while inactive?
  • A contractor markets under a new fictitious name before associating it with the CSLB license record. What should occur before contracting under that name?
  • A corporation's estimator signs a large subcontract although no policy states who may bind the company. Which preventive control is most appropriate?
  • A corporation's license became suspended before it executed a new contract. Why must active status be restored first?
  • A corporation's proposal names only its officer and never identifies the licensed company that will perform the work. What should the agreement show?
  • A licensed company learns on Monday that its sole qualifier has resigned. What should the company address without delay?
  • A licensed contractor's online ad includes a phone number and logo but omits the CSLB number. What identifying information should be added?
  • A proposal uses an active license number, but it belongs to a sister company rather than the proposing entity. What must the prime confirm?
  • A qualifier appears on company records but never reviews bids, field operations, or workmanship. Which duty is being neglected?
  • An individually licensed contractor creates a corporation and accepts the corporation's first job before CSLB issues it a license. May the corporation lawfully rely on the individual's license?
  • An owner pays household bills directly from the contracting company's account and records them as job costs. Why should the practice stop?
  • An RME spends all working time at another business and cannot describe the licensed company's projects. What must the RME actually provide?
  • An unlicensed operator writes four $450 invoices for one $1,800 undertaking to claim each is below the small-job exemption. Does splitting the invoices make the work lawful?
  • Two LLC members each believe only the other can approve contracts over $100,000. Which governing document should resolve the authority question?

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