Tennessee Business and Law Management Exam Practice Exam
Free Practice Exam
Test your knowledge with 10 questions from our pool of 20 free questions.
- 10 questions per attempt
- 30 minute time limit
- Unlimited attempts
- A new mix each time
- Instant results
Full Practice Exam
Complete exam simulation matching the real Prov test format.
- 50 questions (same as real exam)
- 150 minute time limit
- 11 topic areas covered
- 328 questions in pool
- Detailed explanations
Texts preferred · 9am–9pm Central
Tennessee Business and Law Management Practice Exam Guide
What's on the exam
Questions per topic, out of 50This practice exam is built around the official content outline for the Tennessee Business and Law Management exam: Business Organization, Licensing, Estimating and Bidding, Contracts, Project Management, Risk Management, OSHA Safety, Financial Management, Labor Law, Tax Law, Lien Law.
There are two ways to practice. The free practice exam gives you 10 questions per attempt, and you can take it as many times as you like. The full practice exam gives you 50 questions on a 150 minutes clock, with a new draw from our question bank each time.
Business Organization 4 items
Our study plan for this topic: Liability and taxation differences across business structures.
Licensing 5 items
Our study plan for this topic: Contractor license threshold and definition of contracting ($25,000 rule); Licensing application process and required documentation; License classifications and monetary limitations; License renewal requirements, fees, and late penalties; Exemptions from contractor licensing requirements; License revisions including monetary limit increases and qualifying agent changes; Reciprocity agreements and out-of-state applicants; Penalties for unlicensed contracting and unlawful bidding.
Estimating and Bidding 7 items
Our study plan for this topic: Quantity take-off method and cost components; Labor cost calculation and labor burden; Materials cost determination and supplier bidding; Project overhead vs. company overhead calculation; Markup, profit margin, and cost-based pricing; Bid documents, bid package requirements, and submission procedures; Ethics in bidding: bid shopping, bid peddling, and bid rigging; Estimating pitfalls, job cost recording systems, and estimating frameworks.
Contracts 6 items
Our study plan for this topic: Required elements of a binding contract (offer and acceptance, consideration, competent parties, legal purpose); Types of construction contracts (lump-sum, unit-price, cost-plus); Breach of contract types, remedies, and liquidated damages; Progress payments, retainage requirements, and final payment documentation; Risk allocation provisions (force majeure, indemnification, differing site conditions, warranties, delays); Change orders and contract modifications; Alternative dispute resolution methods (negotiation, mediation, arbitration); Tennessee Prompt Pay Act requirements and remedies.
Project Management 4 items
Our study plan for this topic: Scheduling basics: sequence of tasks, activity duration, and the critical path; Scheduling methods: bar (Gantt) charts, critical path method (CPM), and calendar schedules; Project supervisory team roles: project manager, superintendent, and foreman; Monitoring and updating the schedule; communication with the owner, crew, and subcontractors; Quality control during construction: submittals, shop drawings, and inspections; Contract administration on the job: change orders, job records, and project closeout.
Risk Management 4 items
Our study plan for this topic: Types of insurance coverage for contractors (property, liability, automobile, burglary/theft); Surety bonds: types, language, and qualifying requirements; Workers' compensation requirements in Tennessee; Commercial general liability (CGL) and umbrella insurance policies; Bond claims and laws governing federal and Tennessee state public construction projects; Risk allocation provisions in construction contracts (indemnification, force majeure, differing site conditions); Insurance coverage verification and requirements for subcontractors; Coverage gaps, overlaps, and employment-related insurance (unemployment, social security).
OSHA Safety 5 items
Our study plan for this topic: OSHA standards, recordkeeping requirements, and injury/illness forms (300, 300A, 301); OSHA penalty types and amounts for violations; Hazardous materials handling: Safety Data Sheets (SDS) and Hazard Communication Standard; Lead-based paint regulations and Lead Pre-Renovation Education Rule (Lead PRE); Asbestos identification, notification requirements, and TDEC permitting; Clean Water Act, NPDES stormwater permits, and erosion/sedimentation control; Hazardous and non-hazardous solid waste identification, notification, and disposal; Jobsite safety programs: emergency action plans, substance abuse policies, and safety equipment.
Financial Management 3 items
Our study plan for this topic: Business entity types: characteristics, advantages, and disadvantages (sole proprietorship, partnership, corporation, LLC); Financial statements: balance sheet, income statement, and statement of cash flows; Accounting methods: cash, accrual, completed contract, and percentage of completion; Financial ratios: liquidity, quick, activity, debt, and profitability; Payroll accounting: gross pay, tax deductions, net pay, and employer tax obligations; Business registration and naming requirements in Tennessee.
Labor Law 5 items
Our study plan for this topic: Workers' compensation insurance requirements for construction services providers; Exemptions from workers' compensation coverage and eligibility criteria; Workers' compensation exemption registry application and registration process; Revocation and reinstatement of workers' compensation exemptions; Fair Labor Standards Act minimum wage, overtime, and recordkeeping requirements; Child labor restrictions on working hours and prohibited tasks in construction; Key employment discrimination laws (ADA, Title VII, ADEA, Equal Pay Act); New hire reporting requirements and employee documentation.
Tax Law 5 items
Our study plan for this topic: Employer Identification Number (EIN) requirements and application methods; Federal tax forms by business entity type (sole proprietor, partnership, corporation); Self-employment tax obligations and Schedule SE filing threshold; Federal employment taxes: FICA, federal income tax withholding, and FUTA; Payroll tax deposit schedules and penalties for late or incorrect deposits; Form W-2 and Form 1099-MISC reporting requirements and deadlines; Tennessee state taxes: excise, franchise, sales/use, and unemployment taxes; Estimated tax payment thresholds and requirements by entity type.
Lien Law 2 items
Our study plan for this topic: Tennessee mechanics' and materialmen's lien definitions and key terminology (TCA 66-11-101); Who is entitled to file a lien: prime contractors, remote contractors, and property type distinctions (commercial, residential, owner-occupied); Deadlines and procedures for filing a lien: direct lienors (1 year) vs. indirect lienors (90 days); Notice of completion and its effect on lien filing deadlines (10 days residential, 30 days commercial); Lien priority over mortgages and other liens; Tennessee Prompt Pay Act: retainage limits, payment timelines, escrow requirements, and remedies for nonpayment; Notice of nonpayment requirements for remote contractors; Misapplication of loan proceeds and contract payments as felony offenses.
Sample 1 — Estimating and Bidding
Question: What is the primary purpose of a pre-bid meeting in the competitive bidding process?
- A. To allow contractors to submit their completed bids before the official deadline
- B. To negotiate final contract terms between the owner and the lowest bidder
- C. To discuss project specifications and any changes to the bid package
- D. To conduct site visits and review soil analysis reports with all bidders
Correct Answer: C
The reference material states that pre-bid meetings are scheduled, especially for larger projects, and that project specifications and any changes to the bid package are discussed during these meetings.
Reference: NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Documents section
Sample 2 — Contracts
Question: You submit a written bid to an owner for a retail build-out stating a price of $210,000 and a 180-day completion time. The owner returns the bid signed, but has struck out the completion time and written in 150 days, and has initialed the change. You have not responded. What is the contractual status of the parties?
- A. A contract exists on the owner's revised terms
- B. The bid becomes binding after a reasonable time passes
- C. A contract exists on your original bid terms
- D. No contract exists until you accept the revised terms
Correct Answer: D
A bid or estimate is an offer, but acceptance requires agreement to the offer as made. The owner's signature with altered terms is a counteroffer, and a counteroffer is not acceptance; a contract is formed only when both parties agree to the same terms. See NASCLA Contractors Guide, Chapter 8 (Contract Management), Offer and Acceptance section.
Reference: NASCLA Contractors Guide, Tennessee (4th ed.), Chapter 8 (Contract Management) — Offer and Acceptance section
Sample 3 — Licensing
Question: What is the first step in the Tennessee contractor licensing process?
- A. Filing the completed application with the Board along with the $250 fee
- B. Obtaining a reference letter from a past client or codes official
- C. Submitting a financial statement prepared by a CPA
- D. Passing the business and law examination and any applicable trade examination
Correct Answer: D
According to the licensing process outlined in the NASCLA Contractors Guide (Page 3-3), Step 1 states: 'Testing is the first step to getting your Contractor's license. You must pass the business and law examination and any applicable trade examination by registering with the test vendor, PSI Services, LLC.' The guide names PSI as the test vendor because it was printed before the switch: since July 1, 2026, Tennessee's contractor exams are given by Prov.
Reference: NASCLA Contractors Guide, Tennessee (4th ed.), Page 3-3
Your first score is just a starting point. After every attempt, the results page shows how you did on each outline topic, so you can see what to work on next. Compare your score with the real exam's passing score, 73% correct, and keep at it until you pass consistently.
- Start with the questions you know. Go through the whole exam once and bookmark anything you're unsure about. Our practice exams let you bookmark and come back.
- Circle back to your bookmarks on the second pass.
- Keep an eye on your pace. The real exam works out to about 3 minutes per question.
- Turn every miss into a lesson. After each attempt, look up each missed question's reference in your book and read the section.
| Questions | 50 questions |
| Time limit | 150 minutes |
| Passing score | 73% correct |
| Books in the exam room | Open book |
| Exam fee | $53 |
- Results are reported immediately by email with a numerical score and pass/fail result, plus a diagnostic report for candidates who fail.
- Failed exams may be retaken an unlimited number of times with no waiting period, at $53 per attempt.
Source: Tennessee Board for Licensing Contractors Candidate Information Bulletin, TNCONT_CIB 2026.08.18. Check the bulletin before test day: fees and rules can change.