A contractor changes from partnership to LLC and keeps using old partnership forms. What should be checked first?
Correct Answer
D) LLC authority.
A different business entity needs proper contractor license authority and matching records before contracting.
Why This Is the Correct Answer
A different business entity needs proper contractor license authority and matching records before contracting.
Why the Other Options Are Wrong
Option A: LLC employee bond.
LLC employee bond. skips the written authority, scope, price, notice, or release control needed for business entity licensing.
Option B: Crew phone list.
Crew phone list. skips the written authority, scope, price, notice, or release control needed for business entity licensing.
Option C: Supplier catalog.
Supplier catalog. skips the written authority, scope, price, notice, or release control needed for business entity licensing.
Memory Technique
Business Entity square for Auditing Contract: scope, authority, price, paper.
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 licensing; know the rule or calculation trigger without relying on exam-room lookup.
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