C33 California Painting Contractor Business Financial 2

Question 1

Under California CSLB rules, what is the minimum net worth requirement for a C-33 Painting and Decorating contractor?

Accepted Answer

$2,500

Answer

$1,000

Answer

$5,000

Answer

$10,000

Question 2

A C-33 contractor receives a $15,000 painting contract. What is the maximum down payment the contractor may legally collect under California law?

Accepted Answer

$1,000 or 10%, whichever is less

Answer

$1,500 or 10%, whichever is less

Answer

$1,000 or 10%, whichever is greater

Answer

$1,500 or 10%, whichever is greater

Question 3

Which financial document must a C-33 contractor provide to the CSLB if the contractor's license bond is cancelled?

Accepted Answer

A new contractor's license bond or cash deposit

Answer

Profit and loss statement

Answer

Bank letter of credit

Answer

Qualifying individual's personal tax return

Question 4

A painting contractor's operating expenses are $8,000/month. The contractor wants to maintain a 3-month cash reserve. If current reserves are $18,000, how much additional funding is needed?

Accepted Answer

$6,000

Answer

$0

Answer

$2,000

Answer

$4,000

Question 5

Under California mechanics' lien law, what is the deadline for a C-33 subcontractor to file a mechanics' lien after completion of work?

Accepted Answer

90 days

Answer

30 days

Answer

60 days

Answer

120 days

Question 6

What is the current amount of the contractor's license bond required by the CSLB for all active California contractors?

Accepted Answer

$25,000

Answer

$15,000

Answer

$20,000

Answer

$50,000