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100+ Free MS Law and Business Practice Questions

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2026 Statistics

Key Facts: MS Law and Business Exam

70%

Passing Score

PSI MS Contractor Bulletin 4/23/2026

50 Q

Official Exam Questions

PSI MS Contractor Bulletin 4/23/2026

2 hours

Time Allowed

PSI MS Contractor Bulletin 4/23/2026

$120

PSI Exam Fee

PSI MS Contractor Bulletin 4/23/2026

Open book

Exam Format

PSI MS Contractor Bulletin 4/23/2026

Mississippi Law and Business Management is the mandatory PSI exam for all MSBOC applicants: 50 questions, 70% pass, 2 hours, $120 (bulletin 4/23/2026).

Sample MS Law and Business Practice Questions

Try these sample questions to test your MS Law and Business exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A contractor plans to bid a private commercial warehouse job in Mississippi with a contract price of USD 62,000. Which MSBOC license is required?
A.A commercial license, because the commercial work exceeds USD 50,000
B.No license, because the job is under USD 100,000
C.Only a residential remodeling license, because the building is a warehouse
D.Only a local building permit, because MSBOC does not license commercial work
Explanation: MSBOC requires a commercial license for commercial work, including equipment installation, over USD 50,000. A USD 62,000 warehouse contract is commercial work above that threshold, so the bidder must hold a commercial Certificate of Responsibility.
2Which pair of MSBOC dollar thresholds is correct for residential work?
A.New residential construction over USD 10,000 and remodeling or roofing over USD 5,000
B.New residential construction over USD 50,000 and residential remodeling or roofing over USD 10,000
C.New residential construction over USD 100,000 and remodeling or roofing over USD 50,000
D.No dollar threshold; every residential job requires a Residential Builder license
Explanation: MSBOC requires a Residential Builder license for new residential construction over USD 50,000. A Residential Remodeling or Residential Roofing license is required when that work exceeds USD 10,000. These are separate residential classifications with different dollar triggers.
3What are the MSBOC application fees for a new commercial license, a new residential license, and each additional classification?
A.USD 50 commercial, USD 400 residential, and USD 25 per additional classification
B.USD 120 commercial, USD 120 residential, and USD 120 per additional classification
C.USD 400 commercial, USD 50 residential, and USD 100 per additional classification
D.USD 300 commercial, USD 100 residential, and USD 50 per additional classification
Explanation: MSBOC charges USD 400 for a commercial application and USD 50 for a residential application. Adding another classification costs USD 100. The PSI examination fee is separate from these Board application fees.
4A commercial applicant wants a major classification. What financial showing must accompany the application?
A.A personal bank letter stating the owner has USD 10,000 in cash
B.A CPA-reviewed financial statement showing at least USD 50,000 net worth
C.A tax return showing at least USD 20,000 of last year's profit
D.A surety bond for USD 300,000 in place of any financial statement
Explanation: Commercial applicants must submit a CPA-reviewed financial statement. Major classifications require at least USD 50,000 net worth; specialty classifications require at least USD 20,000. The review must be prepared by a certified public accountant.
5What general liability insurance showing does MSBOC require on a commercial application?
A.At least USD 300,000 per occurrence and USD 600,000 aggregate, with MSBOC listed for cancellation notice
B.At least USD 1,000,000 per occurrence, with no Board listing required
C.Proof of coverage with no minimum limit, the same rule used for residential applicants
D.A workers' compensation policy may be substituted for general liability
Explanation: Commercial applicants must show general liability of at least USD 300,000 per occurrence and USD 600,000 aggregate. MSBOC must be listed on the policy so the Board is notified if coverage is cancelled. Residential applicants must prove coverage but have no published minimum limit.
6Who may serve as the qualifying party on an MSBOC Certificate of Responsibility, and what is the usual company limit?
A.Any Mississippi resident, with no limit on the number of companies
B.Only the majority shareholder, and that person may qualify unlimited companies
C.Only a licensed attorney, and that person may qualify two companies
D.An owner, officer, or responsible managing employee, and one person may qualify at most three companies without special Board approval
Explanation: The qualifying party is an owner, officer, or responsible managing employee who takes the exam and stands behind the company's work. One person may qualify no more than three companies at once unless the Board grants special permission for a fourth. The qualifier must actually work for the company and be capable of performing or supervising the licensed trade.
7Which statement about the Mississippi Law and Business Management Examination is correct?
A.It is required only for commercial major-classification applicants and is closed book
B.It is required of all commercial and residential applicants, is open book, costs USD 120 per PSI portion, and has a 70 percent passing score
C.It may be skipped if the applicant already holds a local business license
D.It is administered by MSBOC staff at the Jackson office and may be taken before the application is filed
Explanation: Every commercial and residential applicant must take the Law and Business Management Examination. PSI administers the open-book exam after MSBOC notifies PSI of eligibility. The published fee is USD 120 per portion, and 70 percent is required to pass. Candidates have six months from eligibility, with unlimited retakes in that window.
8How long is an MSBOC license valid, and what happens if it is not renewed on time?
A.It is valid for two years and may be renewed at any time within five years
B.It is valid until the qualifying party leaves, with no annual renewal
C.It is valid for one year and may be renewed up to 180 days after expiration; after that a new application is required
D.It remains active automatically if general liability insurance is kept in force
Explanation: An MSBOC license is valid for one year from issuance and must be renewed annually. A commercial or residential license may still be renewed up to 180 days after expiration. After 180 days the license cannot be renewed and the contractor must submit a new application.
9When does fire-sprinkler work require an MSBOC commercial license?
A.On public projects over USD 5,000 and private projects over USD 10,000
B.Only when the sprinkler contract exceeds the ordinary USD 50,000 commercial threshold
C.Never, because fire-sprinkler work is licensed only by the fire marshal
D.On every sprinkler job, including a USD 500 residential head replacement
Explanation: Fire-sprinkler construction, reconstruction, repair, or maintenance requires a commercial license at lower dollar amounts than ordinary commercial work. Public sprinkler projects over USD 5,000 and private sprinkler projects over USD 10,000 trigger the commercial license. The fire-sprinkler classification also requires NICET Level 3 certification for the qualifying party.
10A Residential Builder license holder wants to take a small commercial tenant-finish job. Under MSBOC classification rules, when may that holder perform commercial work?
A.Whenever the commercial contract is under USD 50,000, with no size limit
B.When the commercial job does not exceed 7,500 square feet
C.Never; a Residential Builder may perform only one- and two-family dwellings
D.Only if the owner is a homeowner converting a house into an office
Explanation: A Residential Builder may perform commercial work if the prescribed job is not more than 7,500 square feet. The same classification covers residential buildings occupied by 50 or fewer families and not more than three floors. Larger or taller commercial work requires a commercial Certificate of Responsibility.

About the MS Law and Business Exam

The Mississippi Law and Business Management Examination is the mandatory open-book PSI exam for all commercial and residential contractor applicants before the Mississippi State Board of Contractors. The official exam has 50 scored questions, a 70% passing standard, and 2 hours allowed. PSI charges $120 per examination portion (Candidate Information Bulletin updated 4/23/2026). This English-language MCQ bank is a study aid for the official content outline; it is not an official PSI form and does not replace MSBOC application review, a required trade exam, or the official open-book examination.

Questions

50 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

$120 (PSI Services LLC (for Mississippi State Board of Contractors))

MS Law and Business Exam Content Outline

10%

Licensing

MSBOC licensing, classifications, Certificate of Responsibility

14%

Estimating and Bidding

Estimating, bidding, and proposal practices

2%

Lien Law

Mississippi mechanics lien concepts

10%

Financial Management

Accounting, financial statements, and job costing

10%

Tax Laws

Employment, sales, and contractor tax obligations

10%

Labor Laws

Wage, employment, and labor compliance

10%

Project Management

Scheduling, supervision, and project controls

12%

Contracts

Construction contracts, change orders, and disputes

4%

Business Organization

Entity types and contractor business structure

8%

Risk Management

Insurance, bonds, and risk allocation

10%

Environmental and Safety

OSHA and environmental compliance

How to Pass the MS Law and Business Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 50 questions
  • Time limit: 2 hours
  • Exam fee: $120

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

MS Law and Business Study Tips from Top Performers

1Study only the approved references listed for this classification in the current PSI Mississippi Contractor bulletin (updated 4/23/2026)
2Practice open-book navigation with permanent tabs and indexes before test day
3Drill OSHA 29 CFR 1926 topics that appear across nearly every trade outline
4Confirm MSBOC classification scope and eligibility at msboc.us before scheduling with PSI
5All applicants must also prepare for Law and Business Management unless this is that exam

Frequently Asked Questions

How many questions are on the MS Law and Business exam?

The official PSI examination has 50 scored questions (plus possible unscored experimental items). Passing is 70% within 2 hours.

How much does the MS Law and Business exam cost?

PSI lists $120 per examination portion (Candidate Information Bulletin updated 4/23/2026). MSBOC application fees are separate: $400 commercial or $50 residential. Additional classifications are $100 each.

Is the Mississippi contractor exam open book?

Yes. PSI administers MSBOC classification exams as open book. Only bulletin-listed approved references are allowed; temporary tabs such as Post-it notes are prohibited.

Do I still need the Law and Business Management exam?

This is the Law and Business Management examination required of all commercial and residential contractor applicants. A trade exam may also be required depending on classification.