Practice Test GeeksC33 - C-33 California Painting Contractor License Practice Test
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California Painting Contractor Business Financial Flashcards

6 cards from real C33 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 California Painting Contractor Business Financial flashcards as text

  1. A C-33 contractor completes a $50,000 painting project. Under California's prompt payment statute, the general contractor must pay the painting subcontractor within how many days of receiving payment from the owner?

    Answer: 7 days

    California Business and Professions Code Section 7108.5 requires general contractors to pay subcontractors within 7 days of receiving payment from the project owner.

  2. Which of the following is NOT a valid business structure for a C-33 painting contractor in California?

    Answer: Limited liability partnership (LLP) with no qualifying individual

    Every licensed contracting business in California must designate a qualifying individual (RMO or RME) who holds the license. An LLP without one cannot legally operate.

  3. A C-33 contractor's job costs $12,000 in materials and $18,000 in labor. If overhead is 20% of direct costs and the contractor targets a 15% profit margin on the total price, what should the total bid price be?

    Answer: $42,353

    Direct costs = $30,000. Overhead at 20% = $6,000. Subtotal = $36,000. For 15% profit margin: $36,000 / (1 - 0.15) = $42,353.

  4. What type of insurance does California law require a C-33 contractor to carry if they have any employees?

    Answer: Workers' compensation insurance

    California Labor Code Section 3700 requires all employers, including painting contractors, to carry workers' compensation insurance for their employees.

  5. Under California law, what are the three accepted methods a C-33 contractor can use to demonstrate financial responsibility to the CSLB?

    Answer: Contractor's license bond, bond of qualifying individual, or cash deposit

    California law provides three methods of financial responsibility: a contractor's license bond, a bond of the qualifying individual, or a cash deposit filed with the CSLB.

  6. A C-33 contractor invoices a homeowner for progress payments. Under California law, progress payments on a home improvement contract must be related to what?

    Answer: The value of work actually performed and materials actually delivered

    Progress payments must be reasonably related to the value of work actually performed and materials delivered. Contractors cannot bill ahead of actual progress.