California Real Estate Salesperson Exam Practice – Question 71

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Explanations

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The Department of Alcoholic Beverage Control (ABC) is the California state agency responsible for approving and regulating the transfer and issuance of liquor licenses. When a business, such as a bar or restaurant, is sold and involves a liquor license, both the seller and buyer must apply to the ABC for approval. The ABC will then investigate and approve the buyer and the proposed business location before the license can be transferred.

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The other options are incorrect:

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The Board of Supervisors is a local governmental body and is not directly responsible for issuing state-level liquor licenses based on the provided sources.

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The State Board of Equalization is responsible for sales taxes and seller’s permits.

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The State Franchise Tax Board administers California’s personal and corporate income taxes and handles withholding requirements for foreign sellers.

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