NASCLA Contractor's Guide, NASCLA Contractors Guide Questions With Complete Solutions

3 elements of a business plan correct answer: -cover page -executive summary -company summary -products and services -market analysis -marketing strategy -financial plan advantages of sole proprietorship correct answer: -minimal legal restrictions -simple ownership form -low start up costs -sole ownership of profits -freedom in decision making process disadvantages of sole proprietorship correct answer: -unlimited personal liability -less available capital -possible difficulty obtaining long-term financing -dissolution of the business on the even of the owner's death who has limited liability in the company? correct answer: limited partners advantages of a general partnership correct answer: -ease of formation -direct profit rewards -larger management base than that of a sole proprietorship disadvantages of a general partnership correct answer: -unlimited personal liability of general partners -multiple decision makers -limited life of the business -changes of partners or partnership agreement may be difficult -partnership dissolves in the event of the death of a general partner bid documents correct answer: -invitation to bid -bid instructions -bid forms -supplements what is an invitation to bid correct answer: gives a brief overview of the project, deadlines, and general requirements bid instructions correct answer: contain specifics of how t