CSLB Contractor's Law & Business Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the CSLB Contractor's Law and Business Exam. Use flashcards and multiple choice questions, each with hints and explanations. Enhance your exam readiness!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How many firms can a Responsible Managing Employee (RME) act as a qualifier for in one year?

One firm.
Two firms.
Three firms.
Four firms.

The correct answer is: One firm.

A Responsible Managing Employee (RME) can qualify only one firm at any given time within a year. This limitation is established to ensure that qualified individuals are adequately focused on the management and operation of a single business entity, thereby upholding the quality and compliance standards required in the contracting industry. By restricting the number of firms an RME can represent, the regulatory framework helps prevent conflicts of interest and maintains oversight of the work being performed under the management of qualified personnel. This ensures that the entity has adequate leadership, accountability, and expertise directed toward its specific projects and activities.