FOR EXAMINATIONS SCHEDULED ON OR AFTER DECEMBER 1, 2021
CONTRACTORS STATE LICENSE BOARD
LICENSE EXAMINATION STUDY GUIDE
LAW AND BUSINESS
Content of the Examination
The Law and Business Examination is divided into
seven major sections:
1. Business Organization and Licensing (13%)
• Company organization
• Licensing requirements
• Advertising and subcontracting
2. Business Finances (15%)
• Cash management
• Budget and planning
• Taxes
• Financial reporting
3. Employment Requirements (20%)
• Hiring employees
• Supervising and training employees
• Evaluation and record-keeping
• Payroll
4. Insurance and Liens (12%)
• Workers’ compensation insurance
• Business insurance
• Liens and other remedies
5. Contract Requirements and Execution (21%)
• Bidding
• Cost control
• Project organization
• Contracts
• Payments
6. Public Works (5%)
• Prevailing wage requirements
• Bonding requirements
• Insurance requirements
7. Safety (14%)
• Training and reporting requirements
• General safety
• Hazardous/unknown materials
*Percentages are approximate*
Test Site Policy
This is a closed-book examination. No reference
materials may be used during the examination. All
materials brought to the examination site must be
left in an unmonitored area at your own risk.
Test Strategy
This is a multiple-choice examination with four
choices per question. Examination questions are
written to provide only one BEST answer. Some
questions require mathematical computation. A
calculator will be provided.
There is no penalty for guessing. If you are unsure
about a particular question, it is better to try to
answer the question than to leave the question
blank.
Plenty of time is provided to answer all examination
questions, so be sure to read each question and its
four choices completely and carefully before
selecting the BEST possible answer to the question.
