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Law & BusinessLicensingmedium11% of exam part

A contractor starts using a new business name in advertising without confirming the name is on the CSLB license record. What is the best compliance step?

Correct Answer

C) Make sure the business name used to contract and advertise matches the licensed business record or is properly updated.

The contractor should not mislead the public about the licensed business identity; business names used should match or be properly recorded with CSLB.

Answer Options
A
Use any name that sounds professional.
B
Use the new name only on social media.
C
Make sure the business name used to contract and advertise matches the licensed business record or is properly updated.
D
Let customers pick which name appears on the contract, even though that can conflict with the licensed business identity.

Why This Is the Correct Answer

The contractor should not mislead the public about the licensed business identity; business names used should match or be properly recorded with CSLB.

Why the Other Options Are Wrong

Option A: Use any name that sounds professional.

Use any name that sounds professional. belongs to a different file or record trail; it does not prove the business name and license identity event.

Option B: Use the new name only on social media.

Use the new name only on social media. belongs to a different file or record trail; it does not prove the business name and license identity event.

Option D: Let customers pick which name appears on the contract, even though that can conflict with the licensed business identity.

Let customers pick which name appears on the contract, even though that can conflict with the licensed business identity. belongs to a different file or record trail; it does not prove the business name and license identity event.

Memory Technique

File Updating Branding where the next reviewer would look first.

Reference Hint

Study anchor (closed-book): memorize Business name and license identity from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code license identity and advertising requirements; know the rule or calculation trigger without relying on exam-room lookup.

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