Contractor Business & Law Exam: free practice test
The business, tax, labor and lien-law exam almost every state requires alongside the trade exam. Most states build it on the NASCLA Contractor's Guide to Business, Law and Project Management, then add a state law supplement.
Watch the free 4:08 video lesson: the key Business & Law concepts →
- Lesson 2: Bidding, Estimating and MarkupThis topic tests the math behind a bid: quantity takeoffs, unit costs, overhead recovery and profit.
- Lesson 3: Contracts, Change Orders and LiensThis topic covers what makes a contract valid, the main contract types, retainage, and how unpaid parties protect themselves with liens and payment bonds.
- Lesson 4: Payroll, Tax and Employment LawThis topic covers payroll tax rates, deposit and filing deadlines, worker classification, wage and hour rules, and hiring paperwork.
- Lesson 5: Insurance, Bonds and RiskThis topic covers the types of surety bonds, who each bond protects, common construction insurance, and how workers' compensation premiums are figured.
- Lesson 6: Financial Management and AccountingThis topic covers basic accounting methods, financial ratios, revenue recognition on long-term contracts, and break-even math.
- Lesson 7: OSHA RecordkeepingThis topic covers which employers keep injury logs, which forms are used, and the deadlines for recording and reporting serious injuries.
- Lesson 8: Environmental RulesThis topic covers federal environmental rules contractors meet most often: stormwater permits on construction sites and lead-safe work in older housing.
Keep going after the free lesson. Every topic gets its own lesson, plus the full question bank, timed simulations and study tools.
About the Business & Law exam
The business, tax, labor and lien-law exam almost every state requires alongside the trade exam. Most states build it on the NASCLA Contractor's Guide to Business, Law and Project Management, then add a state law supplement.
What's on the exam
Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →
How to pass the Business & Law exam
- Know your payroll numbers cold: FICA, FUTA, deposit and filing deadlines.
- Practice ratio and markup math until it's automatic; it's the easiest points on the exam.
- Read every lien question for the trigger date: first furnishing, last furnishing or completion.
- Check your state's candidate bulletin for the exact book list and question count.
Save your results and get your Readiness Score
Create a free account after the test: your score by topic, a mistakes bank, the first study-notes topic, flashcards and the Construction Math Formula Sheet.
What's in the full Business & Law prep
Full question bank
6,100+ exam-style questions written to each official outline. Every answer explained, with the rule it comes from.
Timed exam simulator
Real question counts and time limits, so test day feels like practice day.
Exam Readiness Score
One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.
Flashcards + spaced repetition
530+ cards that come back right before you'd forget them. Five minutes a day keeps every number fresh.
Key study notes
Each topic boiled down to the 5 to 7 facts that get tested, with the statute or code section.
Mind maps
See the whole exam on one screen: every topic and the facts under it.
Sample questions with answers
These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.
1. An employer must complete Section 2 of Form I-9 within how many business days after the employee's first day of work?
2. Completed I-9 forms must be kept for 3 years after the date of hire or for how long after employment ends, whichever is later?
3. The employer's share of Social Security tax is:
4. Federal unemployment tax (FUTA) is 6.0% on the first $7,000 of each employee's wages. With the full state credit, the net federal rate is:
5. Form 941, the Employer's Quarterly Federal Tax Return, reports:
6. Employers must furnish Form W-2 to employees by:
7. A contractor has current assets of $240,000 and current liabilities of $160,000. What is the current ratio?
8. Job cost is $80,000. To earn a 20% gross margin on the selling price, the bid should be:
9. Equipment costs $50,000, has a $10,000 salvage value and a 5-year life. Annual straight-line depreciation is:
10. Which business structure leaves the owner with unlimited personal liability for business debts?
11. The OSHA Form 300A annual summary must be posted in the workplace from:
12. OSHA injury and illness logs (Forms 300, 300A and 301) must be retained for:
13. Under the Fair Labor Standards Act, non-exempt employees must be paid overtime for hours worked over:
14. The EPA Renovation, Repair and Painting (RRP) Rule applies to work that disturbs paint in housing and child-occupied facilities built before:
15. A conditional lien waiver becomes effective:
Get the full Business & Law prep
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- All 12 exams, including state Business & Law
- Full question banks + timed simulations
- Study notes, flashcards & mind maps
- Spaced repetition + mistakes bank
- Readiness Score & detailed reports
- Video lessons as they release
- New exams added during your access
- 5 bonuses: formula sheet, tabbing guide, study planner and more
- Pass Guarantee: complete the prep, pass or 100% back
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All-Access Yearly
- All 12 exams, including state Business & Law
- Full question banks + timed simulations
- Study notes, flashcards & mind maps
- Spaced repetition + mistakes bank
- Readiness Score & detailed reports
- Video lessons as they release
- New exams added during your access
- 5 bonuses: formula sheet, tabbing guide, study planner and more
- Pass Guarantee: complete the prep, pass or 100% back
Renews once a year until you cancel. We email you before each renewal. Cancel any time from your account; you keep access until the end of the year you've paid for.
Licensing guide
How to get a general contractor license in North Carolina (2026): In North Carolina you need a general contractor license from the NC Licensing Board for General Contractors (NCLBGC) for any project that costs $40,000 or more. To get one, you pick a limitation (limited, intermediate or unlimited) and a classification, prove the matching working capital or net worth, apply online, and have a qualifier pass the PSI exam with a score of at least 70. Licenses renew every year, and building, residential and unclassified licenses need 8 hours of continuing education each year.
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Exam details are summarized from the official candidate information available in October 2026. Boards change formats and fees, so confirm with State licensing boards (most use the NASCLA Contractor's Guide to Business, Law and Project Management) before you book. ContractorConquer is not affiliated with any licensing board or testing company.