Business & LicensingQuestion 452 of 1605
Why does the CSLB require each separate business entity to hold its own license rather than allowing one license to cover several businesses?
a.Because the license identifies the specific responsible legal entity and its qualifier to the public
b.To increase the number of examinations administered each year
c.Because federal law prohibits shared licenses
d.To make renewal fees higher for large companies
Explanation
A contractor license under §7065 is tied to a specific legal entity and its qualifying individual. Issuing one license per entity ensures the public and the CSLB can identify exactly who is legally responsible for the contracting work.
Law Reference: Bus. & Prof. Code §7065Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)