This one trips up more people on the state exam than almost anything else.
A continuous load is any load expected to run for 3 hours or more. When you've got one, you don't size your conductors and overcurrent protection to the load itself — you size them to 125% of it. (Same thing said backwards: a breaker can only carry 80% of its rating on a continuous load. That's the "80% rule" you've heard old-timers talk about.)
Example: a 40-amp continuous load isn't a 40-amp circuit. 40 × 1.25 = 50 amps. You size for 50.
Miss that little 125% bump and you'll get the wrong answer every time — on the test and in the field.