California Alcoholic Beverage Control (ABC) Certification Practice Exam

What is the purpose of administrative penalties in regard to licenses?

1. To ensure profitability

2. To punish the licensee

3. To deter misuse of license privileges

4. To educate the licensee

The correct answer is: To deter misuse of license privileges

Administrative penalties are intended to deter individuals from misusing their license privileges. Option A, ensuring profitability, is incorrect because the penalties typically go towards funding for regulatory agencies, not directly to the license holder. Option B, punishing the licensee, is incorrect because the goal is not solely to punish, but to prevent future misuse. Option D, educating the licensee, is not the primary purpose of administrative penalties although learning from mistakes is a potential outcome.