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

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

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  1. Which event would cause a California painting contractor's license to be automatically suspended without a CSLB hearing?

    Answer: Allowing the required contractor's bond to lapse or be cancelled

    California law automatically suspends a contractor's license the moment the required $25,000 contractor's bond lapses, with no hearing required.

  2. When the partners of a painting contracting partnership dissolve the entity, how should outstanding construction contracts be handled?

    Answer: A licensed successor entity or a licensed partner may complete existing contracts

    Outstanding contracts can be completed by a properly licensed successor entity or by a partner who holds their own valid license, ensuring project continuity.

  3. What is the minimum combined labor-and-materials threshold above which performing work without a California contractor's license is illegal?

    Answer: $500 in combined labor and materials

    Under California Business and Professions Code §7048, any project with combined labor and materials exceeding $500 requires a contractor's license.

  4. A C33 license holder wants to operate two entirely separate painting companies simultaneously. How may they legally accomplish this?

    Answer: Qualify both companies using a separate, eligible qualifying individual for each entity

    Each business entity must have its own qualifying individual; using different QIs for each company allows the owner to operate both legally.

  5. What does 'piercing the corporate veil' mean in the context of a painting contractor corporation?

    Answer: A court holding corporate owners personally liable because they failed to maintain proper corporate formalities

    Courts can pierce the corporate veil and hold owners personally liable when the corporation is used as an alter ego or corporate formalities—like separate finances—are ignored.

  6. A painting contractor licensed as a sole proprietor forms a new corporation. Regarding the CSLB license, which statement is correct?

    Answer: The corporation must apply for a new license, and the sole proprietor's license becomes inactive

    A corporation is a new legal entity and must apply for its own CSLB license; the sole proprietor's license does not carry over to the new corporation.

  7. Which state agency has the legal authority to discipline, suspend, or revoke a California C33 painting contractor's license?

    Answer: Contractors State License Board (CSLB)

    The CSLB, operating under the Department of Consumer Affairs, is the sole state agency empowered to issue, suspend, revoke, or otherwise discipline contractor licenses.