EstatePass
Law & BusinessLicensingmedium11% of exam part

A repeat unlicensed-contracting offense involved payments of $16,000. Under the 20 percent or $5,000 comparison, which amount controls as the greater figure?

Correct Answer

B) $5,000.

Twenty percent of $16,000 is $3,200, so $5,000 is the greater comparison amount.

Answer Options
A
$3,200.
B
$5,000.
C
$16,000.
D
$800.

Why This Is the Correct Answer

Twenty percent of $16,000 is $3,200, so $5,000 is the greater comparison amount.

Why the Other Options Are Wrong

Option A: $3,200.

$3,200. is below the supported result for unlicensed contracting penalties; it likely omits allowance, conversion, coverage, or final round-up.

Option C: $16,000.

$16,000. is above the supported result for unlicensed contracting penalties; it likely double-counts allowance, uses the wrong unit, or rounds too early.

Option D: $800.

$800. is below the supported result for unlicensed contracting penalties; it likely omits allowance, conversion, coverage, or final round-up.

Memory Technique

Measure to percent, adjust for dollars, then let Checking Statutory set the finish line.

Reference Hint

Study anchor (closed-book): memorize Unlicensed contracting penalties from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code Section 7028; know the rule or calculation trigger without relying on exam-room lookup.

Was this explanation helpful?

More Law & Business Questions

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your contractor license exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.