10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free GA-BL questions are organized by exam domain, so you can see how each part of the Georgia Business and Law Exam for Residential and General Contractors blueprint is tested. Reveal the answer and explanation under each question.
Domain 1: Licensing Requirements 10% of exam
Question 1
An owner offers a contractor one $1.18 million commercial-building contract, payable through monthly progress payments. The contractor holds only a Georgia General Contractor Limited Tier license. Each planned payment is below $1 million, and the work otherwise fits the contractor's experience. Which statement correctly addresses the license restriction?
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Correct answer: C - The total contract exceeds the Limited Tier limit, regardless of the payment schedule.
Domain 2: Estimating and Bidding 14% of exam
Question 2
The estimate for a renovation includes $96,000 in direct costs, $12,000 in job overhead, and a $12,000 contingency. These amounts include all costs to be recovered by the bid. Which selling price provides a 20% profit margin after covering all three cost categories?
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Correct answer: D - $150,000
Question 3
Two framing crews meet the same quality and completion requirements. Crew A has three carpenters, each costing $32 per hour including labor burden, and installs 32 linear feet per crew-hour. Crew B has four carpenters, each costing $28 per hour including labor burden, and installs 40 linear feet per crew-hour. Which crew has the lower labor cost per installed foot, and what is that cost?
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Correct answer: A - Crew B; $2.80 per linear foot.
Domain 3: Business Organization and Financial Management 14% of exam
Question 4
At month-end, a contractor's current ratio is 1.8 and its quick ratio is 0.65. Current assets consist only of cash, collectible current receivables, inventory, and prepaid expenses. The quick ratio excludes inventory and prepaid expenses. What does the gap between these ratios indicate?
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Correct answer: A - Current assets exceed current liabilities, but much of that coverage comes from inventory and prepayments.
Question 5
The owner of a growing construction firm cannot understand why cash is tight. The accrual income statement shows an operating profit, job-cost reports confirm that costs and labor hours are within estimate, and customers pay in full within their agreed 60-day terms. Employees are paid weekly and material suppliers are paid within 15 days. Which diagnosis best fits the facts?
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Correct answer: D - The firm pays project costs before it collects the related revenue.
Domain 4: Tax Laws 10% of exam
Question 6
A contractor buys and takes delivery of drywall in its own name for incorporation into a Georgia county library. The out-of-state seller collects no sales tax. The county is tax-exempt, but no exemption applies to the contractor's purchase or use of the materials. Who has the Georgia tax obligation on that purchase?
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Correct answer: D - The contractor, as the consumer of the materials incorporated into real property.
Domain 5: Labor Laws 10% of exam
Question 7
A general contractor calls a drywall installer a subcontractor. The installer operates a separate business serving several builders, submits fixed-price bids, supplies the tools, chooses installation methods, and bears rework costs. The general contractor sets site-access hours, enforces site safety rules, and inspects results. For federal employment taxes, which conclusion is best supported?
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Correct answer: C - Independent contractor; the installer controls the methods and bears business profit-or-loss risk.
Domain 7: Contracts 12% of exam
Question 8
The signed contract allows only the owner's project director to authorize changes and requires a signed change order before changed work begins. During a walkthrough, the owner's field observer, who has inspection authority only, requests two extra floor drains. The remaining scheduled work is unaffected and can proceed safely. How should the superintendent handle the request?
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Correct answer: B - Continue unaffected work and obtain the project director's signed change order.
Domain 8: Risk Management 8% of exam
Question 9
During framing, a contractor's employee drops a tool through the roof of an occupied neighboring building. The neighbor demands payment for damage to that building; the work under construction is undamaged. Which coverage is primarily intended to address the contractor's potential liability to the neighbor?
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Correct answer: B - Commercial general liability coverage for damage to third-party property.
Domain 9: Environmental and Safety 10% of exam
Question 10
A pipe crew is working in an unprotected trench 4 feet 6 inches deep. After heavy rain, the competent person observes fresh cracks along the edge and soil sloughing from the walls. A ladder is already within 25 feet of every worker. What must the competent person require?
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Correct answer: B - Remove the crew until an adequate cave-in protective system is in place.