NASCLA- Part 1 (Getting Your Business Off The Ground) Questions With Complete Solutions

Benefits of a Business Plan correct answer: -blueprint for your business -used as a planning and benchmarking tool -sometimes requires by bank, loan officers or investors Elements of a Business Plan correct answer: -cover page -executive summary -company summary -list of services/products -market analysis -marketing strategy -financial plan Business Plan Pitfalls correct answer: -not portraying a accurate picture of your business -not keeping it simple in language or jargon -not covering the risks as well as the opportunities -not analyzing competition Sole Proprietorship correct answer: -one owner -easy formation and operation -unlimited personal liability -entity not taxed; profits and losses claimed on personal taxes -minimal legal restrictions -termination of business at time of owners death Partnerships correct answer: -two types: general and limited -two or more persons; each contributes money, property or skill -share in profits and losses -business keeps a separate bank accounts and financial records -taxes are the responsibility of every partner C Corporation correct answer: -unlimited number of shareholders -managed by board of directors -no personal liability of shareholders -entity is responsible for business debts