California Real Estate Practice Exam

A married woman purchased a business with separate funds, and subsequently decided to obtain a liquor license. She:

1. must apply to the Department of Alcoholic Beverage Control

2. must apply to the Franchise Tax Board

3. must apply, with her husband, to the Alcoholic Beverage Control Department

4. must apply, with her husband, to the Board of Equalization

The correct answer is: must apply to the Department of Alcoholic Beverage Control

The correct action for a married woman who wishes to obtain a liquor license after purchasing a business with separate funds is to apply to the Department of Alcoholic Beverage Control. This agency is specifically responsible for regulating the sale and distribution of alcoholic beverages in California. They oversee the licensing process, including both the compliance checks and the issuance of liquor licenses. While it is essential to consider the implications of community property laws in California, where assets acquired during marriage are usually considered joint property, a business purchased with separate funds typically remains under the sole ownership of the individual who purchased it. Therefore, she can independently apply for the liquor license without necessarily needing her husband's involvement. The other agencies mentioned, like the Franchise Tax Board and the Board of Equalization, deal with taxation issues rather than the licensing of alcoholic beverages. The Franchise Tax Board focuses on income tax for businesses and individuals, while the Board of Equalization is concerned with sales and use taxes, and other tax-related matters. Therefore, they wouldn't be the appropriate authority for applying for a liquor license. Thus, the best course of action is to apply directly to the Department of Alcoholic Beverage Control.