Florida Business & Finance Exam Study Guide (2026)
Everything the Florida Business & Financial Management Exam tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 120 multiple-choice questions |
|---|---|
| Time | 6.5 hours |
| Passing score | 70% (84 of 120 correct) |
| Format | Open book (approved reference list) |
| Licensing body | Florida Construction Industry Licensing Board (CILB) |
| Test provider | Pearson VUE |
Mind map: the whole exam on one screen
1. Establishing the Business
This topic covers how a Florida contracting business is set up and registered, and how a license holder qualifies a company. Expect questions on business entity filings, qualifying agents and the financial requirements to get licensed.
Key facts
- A business organization (corporation, partnership, LLC or other entity) can only contract through a licensed qualifying agent who applies to qualify that business (F.S. 489.119(2)).
- If the only qualifying agent leaves, the business must notify the department and has 60 days to employ another qualifying agent. It may not contract until one is hired unless a temporary exception is granted (F.S. 489.119(3)).
- All primary qualifying agents are jointly and equally responsible for supervising all operations, field work and finances of the business. A financially responsible officer may not be the primary qualifying agent (F.S. 489.1195).
- Financial stability requires a FICO-derived credit score of 660 or higher. Applicants below 660 must complete a board-approved 14-hour financial responsibility course (Rule 61G4-15.006).
- The credit report must show no unsatisfied judgments or liens against the applicant or a business the applicant qualifies (Rule 61G4-15.006).
- A fictitious name (d/b/a) registration expires December 31 of the 5th calendar year, and each renewal is valid for 5 years (F.S. 865.09).
- A Florida corporation must file its annual report with the Division of Corporations between January 1 and May 1 each year (F.S. 607.1622).
Flashcards
Exam tip: Watch for questions that swap the qualifier and the business: the license is issued to the business organization, but the qualifying agent carries the supervision duty.
2. Administrative Duties and Records
This topic covers the paperwork a contractor must handle when hiring, reporting injuries and keeping records. The exam favors deadlines and retention periods, so memorize the numbers.
Key facts
- An employer must complete Section 2 of Form I-9 within 3 business days after the employee's first day of work (8 CFR 274a.2(b)(1)(ii)).
- Keep each Form I-9 for 3 years after the hire date or 1 year after employment ends, whichever is later (8 CFR 274a.2(b)(2)).
- Florida employers must report new hires within 20 days of the hire date (F.S. 409.2576).
- Report a work-related fatality to OSHA within 8 hours. Report an inpatient hospitalization, amputation or loss of an eye within 24 hours (29 CFR 1904.39).
- Post the OSHA Form 300A annual summary from February 1 to April 30, and keep OSHA injury records for 5 years (29 CFR 1904.32 and 1904.33).
- FLSA payroll records must be kept 3 years. Time cards and wage rate tables must be kept 2 years (29 CFR 516.5 and 516.6).
- An injured employee must tell the employer within 30 days. The employer must report the injury to its workers' compensation carrier within 7 days of actual knowledge (F.S. 440.185).
Flashcards
Exam tip: Retention questions often mix up agencies: OSHA logs 5 years, IRS employment tax records 4 years, FLSA payroll 3 years.
3. Bidding and Estimating
This topic tests the math behind a bid: quantity takeoffs, unit costs, overhead and profit. These are calculation questions, so they are reliable points if you know the formulas.
Key facts
- Markup is based on cost: Selling price = Cost x (1 + markup %).
- Margin is based on selling price: Selling price = Cost / (1 - margin %).
- Convert margin to markup with Markup = Margin / (1 - Margin). A 20% margin requires a 25% markup.
- Cubic yards = (length x width x depth in feet) / 27. Convert inches to feet first: 4 inches = 0.333 feet.
- Overhead percentage = Annual overhead / Annual direct job costs. Apply it to the direct cost of each bid.
- Direct costs are labor, materials, equipment and subcontracts for the job. Indirect (overhead) costs like office rent and admin salaries are spread across all jobs.
- Labor burden includes the employer's payroll taxes and insurance on top of base wages, such as 7.65% FICA plus FUTA, state reemployment tax and workers' compensation.
Flashcards
Exam tip: When a question says 'margin' or 'percent of selling price,' divide by (1 - margin); multiplying cost by (1 + percent) is the classic wrong answer.
Test yourself on these topics
Take the free 15-question Florida Business & Finance test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Contracts and Legal Deadlines
This topic covers what Florida requires in residential construction contracts and the time limits for lawsuits and defect claims. Questions often ask for a dollar threshold or a number of days.
Key facts
- Residential contracts must include the Florida Homeowners' Construction Recovery Fund notice unless labor and materials total $2,500 or less. Fines are up to $500 for a first violation and $1,000 for later ones (F.S. 489.1425).
- Direct contracts over $2,500 for dwellings of up to 4 units must include the lien law notice in at least 12-point, capitalized, boldface type, signed and dated by the owner (F.S. 713.015).
Flashcards
Exam tip: Separate the two $2,500 contract notices: F.S. 489.1425 is the Recovery Fund notice, F.S. 713.015 is the lien law warning for dwellings up to 4 units.
5. Florida Construction Lien Law
Chapter 713 decides who can lien a property, what notices they must serve and how long liens last. It is one of the most heavily tested areas and is almost entirely deadlines.
Key facts
- Lienors not in privity with the owner, except laborers, must serve a Notice to Owner within 45 days after first furnishing and before the owner's final payment (F.S. 713.06(2)(a)).
- A claim of lien must be recorded within 90 days after final furnishing, and served on the owner before or within 15 days after recording (F.S. 713.08(4)(c) and (5)).
Flashcards
Exam tip: Read whether the clock starts at first furnishing (Notice to Owner, 45 days) or final furnishing (claim of lien, 90 days); test writers swap them.
6. Licensing Law and Discipline
This topic covers Chapter 489 and the board rules in 61G4: who needs a license, renewal and continuing education, penalties and the Recovery Fund. Expect direct questions on fines, felony levels and dollar caps.
Key facts
- Certified contractors may work statewide. Registered contractors may work only where they hold a local competency license (F.S. 489.105 and 489.117).
- Licenses renew every 2 years with at least 14 hours of continuing education, including workers' compensation, business practices, workplace safety and 1 hour of laws and rules (F.S. 489.115(4)(b)).
Flashcards
Exam tip: Recovery Fund caps depend on the contract date; older study guides still list $50,000, so check the date in the question.
7. Payroll, Tax and Employment
This topic covers withholding, employer payroll taxes, filing deadlines and wage law. Expect calculation questions on overtime, FICA and FUTA.
Key facts
- Social Security tax is 6.2% each for employer and employee on wages up to $184,500 in 2026. Medicare is 1.45% each with no wage limit (IRC §3101 and §3111).
- Employers withhold an additional 0.9% Medicare tax on an employee's wages over $200,000. There is no employer match (IRC §3101(b)(2)).
Flashcards
Exam tip: Florida has no personal state income tax, so any answer that includes Florida income tax withholding is wrong.
8. Financial Management and Accounting
This topic covers reading financial statements, ratios, depreciation and break-even. These are formula questions that appear on every exam.
Key facts
- The accounting equation: Assets = Liabilities + Owner's equity.
- Working capital = Current assets - Current liabilities. Current ratio = Current assets / Current liabilities.
Flashcards
Exam tip: Check whether a ratio question asks for working capital (a dollar amount) or the current ratio (a number like 2.0); both use the same inputs.
9. Risk Management, Insurance and Bonds
This topic covers required liability insurance, Florida workers' compensation rules and surety bonds on public and private work. Expect questions on coverage minimums, exemptions and bond claim deadlines.
Key facts
- General and building contractors must carry $300,000 public liability and $50,000 property damage. Residential and most other categories need $100,000 and $25,000 (Rule 61G4-15.003).
- In construction, any employer with 1 or more employees must carry workers' compensation (F.S. 440.02(20)(b)).
Flashcards
Exam tip: Do not apply the general rule of 4 or more employees to construction; for contractors, workers' comp is required with just 1 employee.
How to pass
- Lien law is worth the most easy points. Memorize 45 / 90 / $2,500 and the final payment affidavit timing.
- You have about 3 minutes per question. Don't fully read the manual; use the index.
- Accounting math (ratios, depreciation, break-even) shows up every sitting.
Frequently asked questions
How long should I study for the Florida Business & Finance exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Is the Florida Business & Finance exam open book?
Open book (approved reference list). Check the current candidate information bulletin from Florida Construction Industry Licensing Board (CILB) for the approved reference list and tabbing rules.
What score do I need to pass the Florida Business & Finance exam?
70% (84 of 120 correct). The exam has 120 multiple-choice questions and a time limit of 6.5 hours.
What are the most tested topics?
The outline covers establishing the business, administrative duties and records, bidding and estimating, contracts and legal deadlines, florida construction lien law, licensing law and discipline, payroll, tax and employment, financial management and accounting, risk management, insurance and bonds. Use the free practice test to see which ones you need most.
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Summarized from official candidate information and the statutes, codes and regulations cited, checked October 2026. Confirm current requirements with Florida Construction Industry Licensing Board (CILB).