The best way to study for the South Carolina commercial Business Management and Law exam is to practice the way the exam tests: single best answer, one number or rule per question, 2.5 minutes on the clock. Below are seven sample questions in exam style, each with the correct answer and a short explanation. All figures come from the verified exam facts.
This is an independent study aid, not affiliated with the SC Department of Labor, Licensing and Regulation (LLR), the Contractor's Licensing Board, or PSI. Verify every detail against the current PSI candidate bulletin and SC Code.
Question 1: The passing score
The SC commercial Business Management and Law exam has 50 scored questions. How many must you answer correctly to pass?
A) 30 B) 35 C) 40 D) 45
Answer: B) 35. The passing score is 70 percent, which is 35 out of 50. You can miss 15 questions and still pass. The full format is in the exam overview.
Question 2: Prompt pay clocks
Under the SC Prompt Pay Act, the owner must pay the contractor within how many days of receiving a pay request, and the contractor must pay the subcontractor within how many days of receiving payment?
A) 15 and 10 B) 30 and 15 C) 21 and 7 D) 14 and 14
Answer: C) 21 and 7. The owner pays the contractor within 21 days; the contractor pays the subcontractor within 7 days. Choice A is a trap for multi-state studiers: those are Georgia's clocks, not South Carolina's. See the Prompt Pay Act post for the interest and withholding rules.
Question 3: Lien deadlines
A subcontractor last furnished materials on March 1. By what date must the lien notice be served on the owner and filed?
A) Within 60 days after last furnishing B) Within 90 days after last furnishing C) Within 120 days after last furnishing D) Within 180 days after last furnishing
Answer: B) Within 90 days after last furnishing. Serve the owner and file the notice within 90 days. The 180-day figure is the separate deadline to begin the enforcement action. The lien law post covers both clocks plus waivers and priority.
Question 4: Workers' compensation threshold
In South Carolina, workers' compensation coverage is required for employers with how many employees?
A) 1 or more B) 3 or more C) 4 or more D) 10 or more
Answer: C) 4 or more. S.C. Code section 42-1-360 sets the threshold at 4 or more employees, including part-time and family members. Sole proprietors, partners, and LLC members are exempt for themselves; corporate officers are covered but may elect exclusion.
Question 5: Sales tax on materials
A South Carolina commercial contractor buys lumber for a lump-sum project. Who pays the 6% state sales tax on the lumber?
A) The project owner, as the end user B) The contractor, who is treated as the consumer C) No one; contractors hold a resale exemption D) The supplier, who absorbs it
Answer: B) The contractor, who is treated as the consumer. Sales of building materials to construction contractors are retail transactions in South Carolina. The contractor pays the tax on materials purchased and cannot claim a resale exemption.
Question 6: OSHA reporting
An employee is fatally injured on a South Carolina jobsite. Within how long must the employer report the fatality to OSHA?
A) 8 hours B) 24 hours C) 48 hours D) 7 days
Answer: A) 8 hours. Fatalities are reported within 8 hours. Hospitalizations, amputations, and eye losses are reported within 24 hours. That 8/24 split is a classic exam pair, so memorize both numbers together.
Question 7: First administrative offense
Under SC Code section 40-11-100, the maximum penalty for a first administrative offense under the contractor licensing law is:
A) $250 B) $500 C) $1,000 D) $2,500
Answer: B) $500. A first administrative offense carries up to $500. Continuing violations may be assessed at up to $2,500 per day, with a 15-day appeal window and payment due within 30 days if not appealed. The license requirements post has the full penalty rule.
How you did
Seven for seven means your numbers are solid. Misses on 2, 3, or 6 point to deadline and reporting drills. Misses on 4, 5, or 7 point to threshold and tax rules. Either way, the fix is the same: drill the figures until they are automatic, then use the open-book strategy to handle the reasoning questions.
Try the free practice quiz
Want more? Take the free 12-question South Carolina Commercial Business and Law practice quiz, the scored version with email results, so you can see exactly which topics need work. Start the free quiz
For 150 weighted practice questions across all eleven content areas, the South Carolina Commercial Business Law Study Guide is the full prep package.