Texas Private Investigators License Practice Exam

When applying for a license, what percentage interest in a business must a partner or shareholder have to be listed?

1. 3%

2. 4%

3. 5%

4. 6%

The correct answer is: 5%

The requirement that a partner or shareholder must have at least a 5% interest in a business to be listed on a licensing application is important for transparency and accountability within the private investigation industry. This threshold ensures that all individuals who hold a significant stake in the business are disclosed, allowing regulatory bodies to assess the qualifications and backgrounds of those who are involved in the management or control of the licensing entity. By setting the percentage at 5%, the regulation aims to mitigate potential risks associated with unethical practices, ensuring that those with a substantial influence or investment in the business are subject to the same standards and scrutiny that apply to licensed private investigators. This helps maintain the integrity of the profession and protects both consumers and the public by assuring that responsible parties have been vetted and meet state requirements for professionalism and ethical behavior.