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

The CSLB requires a minimum net worth of $2,500 for active licensed contractors as part of their financial responsibility requirements.

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

California Business and Professions Code Section 7159.5 limits down payments to $1,000 or 10% of the contract price, whichever is less.

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

When a contractor's license bond is cancelled, the contractor must file a replacement bond or cash deposit of $25,000 to maintain the license.

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

A 3-month reserve requires $24,000 ($8,000 x 3). With $18,000 on hand, the contractor needs $6,000 more.

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

Under California Civil Code Section 8414, a subcontractor must record a mechanics' lien within 90 days after completion of the work of improvement.

C33 - C-33 California Painting Contractor License Practice Test

C33 - C-33 California Painting Contractor License Practice Test

C33 California Painting Contractor Business Financial 2