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If a contractor is licensed by the State:

  1. He/she is exempted by the local building departments, even if they normally require permits

  2. He/she is required to use his/her license number on all advertisements

  3. He/she does not need a building permit to construct a home

  4. None of the above

The correct answer is: He/she is required to use his/her license number on all advertisements

A contractor licensed by the State is indeed required to use his/her license number on all advertisements. This requirement serves multiple purposes, including ensuring that consumers can verify the legitimacy of the contractor, providing transparency, and helping to maintain professional standards within the industry. By including the license number, contractors also showcase their commitment to adhering to regulations and quality standards set forth by the licensing authority. While options regarding exemption from local building department regulations or building permit requirements might seem plausible, they do not accurately reflect the responsibilities established for licensed contractors. Local building departments typically retain their authority over permits regardless of state licensing, and building permits are usually necessary for construction activities to ensure compliance with local codes and safety regulations. Therefore, the requirement for advertisement disclosure is a crucial aspect of contractor accountability.