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A corporation signs a CA construction contract, but only the owner's old sole-proprietor license is active. What is the licensing issue?

Correct Answer

A) The corporation needs its own proper license authority.

The business entity that enters the contract must hold the proper contractor license authority; an old sole-proprietor license does not automatically license a corporation.

Answer Options
A
The corporation needs its own proper license authority.
B
Use the prior license record while the new contracting entity signs the documents.
C
The customer can pick the licensed entity after completion.
D
The contract is licensed if the logo looks the same.

Why This Is the Correct Answer

The business entity that enters the contract must hold the proper contractor license authority; an old sole-proprietor license does not automatically license a corporation.

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