Business & LicensingQuestion 1437 of 1605
Diversion of funds or property received for a specific construction project, causing inability to complete it, is known as what violation?
a.Legitimate cash flow
b.Diversion of funds, a ground for disciplinary action
c.A minor bookkeeping issue
d.A tax strategy
Explanation
Under B&P Code section 7108, diverting funds or property received for the completion of a project, or for payment for materials or services, and thereby failing to complete the project or pay for those items, is grounds for discipline.
Law Reference: B&P Code §7108Practice 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)