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CA Law & Business Exam

LAW Exam

CA · CSLB Exam

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  • Business Organization and Licensing
    13%
  • Business Finances
    15%
  • Employment Requirements
    20%
  • Insurance and Liens
    12%
  • Contract Requirements and Execution
    21%
  • Public Works
    5%
  • Safety
    14%

See how you learn

Business Finances

Question 1
What is the primary effect on a contractor's cash flow when a project owner holds a 10% retention?
Active Guidance

Retention is a portion of the contract price withheld by the owner, which restricts the contractor's working capital prior to the final completion of the project. It is an asset (accounts receivable) rather than a liability or a direct reduction in the earned profit of the job.

Common Questions

Is this updated for 2026?

Yes. All questions, code references, and study materials are strictly updated to the latest 2026 CSLB standards.

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