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Law & BusinessLicensingmedium11% of exam part

A partnership license is shown as active, but a partner has left and the office is unsure whether the license record remains valid. What should happen before new work is sold?

Correct Answer

C) Verify current entity status with CSLB.

Ownership or personnel changes can affect license records, so current entity status should be verified before contracting.

Answer Options
A
Use the old forms until the supply runs out.
B
Ask the customer to initial the old partner list.
C
Verify current entity status with CSLB.
D
Transfer the partner's role to the estimator by email.

Why This Is the Correct Answer

Ownership or personnel changes can affect license records, so current entity status should be verified before contracting.

Why the Other Options Are Wrong

Option A: Use the old forms until the supply runs out.

Use the old forms until the supply runs out. belongs to a different file or record trail; it does not prove the business entity licensing event.

Option B: Ask the customer to initial the old partner list.

Ask the customer to initial the old partner list. belongs to a different file or record trail; it does not prove the business entity licensing event.

Option D: Transfer the partner's role to the estimator by email.

Transfer the partner's role to the estimator by email. belongs to a different file or record trail; it does not prove the business entity licensing event.

Memory Technique

File Screening Contracts where the next reviewer would look first.

Reference Hint

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

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