Everything You Need to Know About the Florida Business and Finance Exam
The Business and Finance exam is required for all contractor license types in Florida. The good news is that preparing for the exam not only helps you to pass but equips you to run your own contracting business.
The exam tests your knowledge of how to run a contracting business, including issues pertaining to administration, employees, contracts, and finances.
The Florida Business and Finance Exam has 120 questions and a 6.5-hour time limit to complete it. It requires a diligent effort to learn the material to pass. That’s where an examination preparation course is most valuable—it prepares you to pass the exam by teaching you the material you need to know and test-taking strategies.
Here is more information about the exam, study tips, and what Gold Coast Schools offers so you can successfully pass your exam on the first try!
Background on the Florida Business and Finance Exam
The Florida Department of Business and Professional Regulation (DBPR) is the regulatory agency that sets and oversees licensing requirements for contractors. Their job is to ensure contractors meet the basic requirements to perform their job, including managing and running a business. The state uses exams to test that knowledge, including the Business and Finance exam, which is required for all license types and categories.
Who Has to Take the Exam?
All construction contractor licensees are required to take the Business and Finance exam along with a trade exam, except electrical contractors. Electrical contractors have different exam requirements. However, passing the exam does not mean you will get a license.
To become a contractor in Florida, you must:
- Pass all exams required.
- Be at least 18 years of age.
- Meet the educational and experience requirements.
- Be of good moral character.
- Pay all applicable fees.
- Obtain worker’s compensation coverage.
- Demonstrate financial responsibility.
Florida has two construction contractor license categories: Division 1 and 2. Anyone applying for a Division 1 category license must pass three exams: the Business and Finance, Contact Administration, and Project Management exams.
Division 1 categories include:
- General Contractor
- Building Contractor
- Residential Contractor
- Tower Specialty Contractors
- Demolition Contractors
- Industrial Facility Contractors
Licensees seeking a license from Division 2 are required to pass the Business and Finance exam and a trade exam.
Division 2 categories include:
- Class A, B and C Air Conditioning Contractors
- Commercial and Residential Pool and Spa Construction and Servicing Contractors
- Mechanical Contractor
- Plumbing Contractor
- Underground Utility and Excavation Contractor
- Solar Contractor
- Pollution Storage Systems Contractor
- Specialty Contractors
Licensees who have a bachelor’s degree in building construction with a GPA of 3.0 or higher or have an active license may be exempt from taking the trade exam. However, the Business and Finance exam is required.
What Does the Exam Include?
The open-book exam has 120 multiple-choice questions, except for the Service Pool candidates, who take a 60-question exam. You have 6.5 hours to complete the exam and must get at least a 70% to pass or 84 questions correct.
There are six main content areas:
Content Area A: Establishing the Contracting Business (11%)
- Determining the business organization structure
- Develop the business plan
- Establish relationships with other professionals
- Acquire fixed assets
- Obtain insurance
Content Area B: Managing Administrative Duties (26%)
- Develop the business
- Determine outsourced services
- Determining business overhead
- Preparing bids and proposals
- Purchase materials and supplies
- Prepare invoices and draw requests
- Develop a safety plan
- Maintain insurance
- Managing contracts
Content Area C: Managing Trade Operations (10%)
- Schedule trade operations
- Maintain OSHA and safety records
- Purchase and order materials and supplies
- Leasing and purchasing property
- Manage material, tool, and equipment inventory
Content Area D: Conducting Accounting Functions (32%)
- Manage accounts receivable
- Manage accounts payable
- Manage cash flow
- File tax forms and returns
- Track job costs
- Calculate employee payroll
Content Area E: Managing Human Resources (6%)
- Hire new employees
- Develop human resources policies and procedures
- Evaluate employees
Content Area F: Complying with Government Regulations (15%)
- Comply with federal laws and regulations
- Comply with state laws and regulations
The best way to pass the exam is to study from the materials you’re permitted to bring with you to the exam. Here’s the current list. All reference materials must be permanently or professionally bound. Tablets, handwritten and typewritten notes, or removable tabs are not allowed.
Study Tips for Success
When you’re ready to schedule the Florida Business and Finance Exam, here are some tips to ensure success:
- Create a manageable and effective study schedule. You should set aside at least 1 to 2 hours every day to study and should plan to study for at least 4 to 6 weeks leading up to the exam.
- Focus on key topics based on exam weight. Not all sections are weighted equally. You must pass 84 questions correctly. Begin by focusing on the topics you know well. Once those are dialed in, move onto topics you need a refresher based on how many of those questions you’re likely to see. Administrative duties and accounting functions make up more than 50% of the exam and should make up about 50% of your study efforts.
- Take practice tests early and often. The best way to identify your strengths and weaknesses is to take a practice exam. Take one the first week you begin to study so you can outline areas where you’re nailing it (pun intended) and where you need to apply more effort.
- Manage test anxiety and improve time management. It’s rare that someone will get every single question correct. Remember, you don’t need to be perfect. Exam prep courses teach you how to overcome test anxiety and take timed tests. Practice tests should simulate actual testing conditions, so you get used to working under pressure.
- The best thing you can do is to remember to take a breath. Find a way that works for you to calm your nerves on exam day. If you don’t know the answer to a question, skip it and move on to questions you can answer easily.
Why Choose Our Exam Prep Course?
Gold Coast Schools has been helping people successfully pass their Business and Finance exam for decades. We are committed to helping you pass your exam.
Our courses come with a full set of reference materials, including highlighting guides and tabs, you can bring with you to the exam. We offer flexibility with livestreaming and in-person options, online simulated exams, and a 2-day weekend “cram” workshop that includes a complete reference book review, real-world practice problems, and tabbing and highlighting tips. You get the personalized attention you need to succeed.
Here’s what a past student has to say about Gold Coast Schools:
Gold Coast Schools is the absolute best school to go to for General Contractor’s license, they have many options of learning the material. From online tests, in class lectures, and even all-day cram courses. Wally Lawson is a great GC teacher, and I would highly recommend going to his class in Boca for help regarding anything. Passed all three state tests and I am more than happy with my money being spent on Gold Coast. ~ Troy B.
If you’re ready to get your contractor’s license in Florida, reach out to Gold Coast Schools. Our trusted Florida contractor license school here to help you every step of the way.