MECHANICAL LAW EXAM SCRIPT
UPDATED COMPLETE QUESTIONS AND
ANSWERS GRADED APLUS
●● Partnerships
Answer: Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
●● C Corporations
Answer: Corporations that have no restrictions on who owns their shares
or the number of shareholders; they cannot qualify for subchapter S tax
treatment and are subject to direct taxation
●● S corporation
Answer: A unique government creation that looks like a corporation but
is taxed like sole proprietorships and partnerships
No more than 100 shareholders
FILING IRS FORM 2553
●● Limited liability company
Answer: A business organization in which the business (not the owner)
is liable for the company's debts
,●● joint venture
Answer: an agreement between two or more companies to share a
business project
●● Reserving business Name
Answer: Register with secretary of state
●● Purpose of licensing
Answer: Protect Health, Safety, and welfare of the public
●● When is a Contractors license Needed?
Answer: Excess of $5000
●● cease and desist order
Answer: ruling requiring a company to stop an unfair business practice
from performing work without a license
●● Monetary limitations for general and mechanical contractors
Answer: determined by the financial net worth of the entity seeking
licensure
●● Group Limitations
Answer: Divided into groups according to net worth.
, ●● Reciprocity
Answer: South Carolina has a reciprocal agreement with certain states
but licensee must still pass the business and law exam.
●● Property insurance
Answer: A type of insurance that covers damage to property, such as a
home.
●● liability insurance
Answer: insurance that provides protection from claims arising from
injuries or damage to other people or property
●● Business Owners Policy (BOP)
Answer: Property and liability Coverage are bundles under business
owners policies
●● Automobile Insurance
Answer: Provides payments for both liability and physical damage to
vehicles
●● Burglary and Theft Insurance
Answer: Loss or damage by burglary, theft, Larceny, Robbery, Forgery,
Fraud, and vandalism.
UPDATED COMPLETE QUESTIONS AND
ANSWERS GRADED APLUS
●● Partnerships
Answer: Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
●● C Corporations
Answer: Corporations that have no restrictions on who owns their shares
or the number of shareholders; they cannot qualify for subchapter S tax
treatment and are subject to direct taxation
●● S corporation
Answer: A unique government creation that looks like a corporation but
is taxed like sole proprietorships and partnerships
No more than 100 shareholders
FILING IRS FORM 2553
●● Limited liability company
Answer: A business organization in which the business (not the owner)
is liable for the company's debts
,●● joint venture
Answer: an agreement between two or more companies to share a
business project
●● Reserving business Name
Answer: Register with secretary of state
●● Purpose of licensing
Answer: Protect Health, Safety, and welfare of the public
●● When is a Contractors license Needed?
Answer: Excess of $5000
●● cease and desist order
Answer: ruling requiring a company to stop an unfair business practice
from performing work without a license
●● Monetary limitations for general and mechanical contractors
Answer: determined by the financial net worth of the entity seeking
licensure
●● Group Limitations
Answer: Divided into groups according to net worth.
, ●● Reciprocity
Answer: South Carolina has a reciprocal agreement with certain states
but licensee must still pass the business and law exam.
●● Property insurance
Answer: A type of insurance that covers damage to property, such as a
home.
●● liability insurance
Answer: insurance that provides protection from claims arising from
injuries or damage to other people or property
●● Business Owners Policy (BOP)
Answer: Property and liability Coverage are bundles under business
owners policies
●● Automobile Insurance
Answer: Provides payments for both liability and physical damage to
vehicles
●● Burglary and Theft Insurance
Answer: Loss or damage by burglary, theft, Larceny, Robbery, Forgery,
Fraud, and vandalism.
