2024 NASCLA Test 3 Actual Questions and Verified Answers ( Included ) 100% Correct

NASCLA Test 3 1. Key Functions of a business plan: Answer 1.) Planning tool 2.) Loan or Investor Document 3.) Benchmarking Tool 2. Elements of a business plan: Answer 1.) Cover page 2.) Executive Summary 3.) Company Summary 4.) Products and Services 5.) Market Analysis 6.) Marketing Strategy 7.) Financial PlanCECPMMF 3. Sole proprietorship: Answer you are the sole owner - exposes to unlimited liability forbusiness debt 4. Disadvantages of a sole proprietorship: 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 5. Key Characteristics of a partnership: Answer Existence -oral agreement or written General Partners own the assets of the company Limited partners have limited liability in the company 6. Advantages of a general partnership: Answer -Ease of formation -Direct profit rewards -Larger management base than sole prop 7. Disadvantages of a General partnership: Answer -Unlimited personal liability of GP -Multiple decision makers -Limited Life of business -Changes of partnership agreement may be difficult -Partnership dissolves in the event of a GP's death 8. C Corp liability: Answer The owners of the corp (stockholders) are not personally liablefor the losses of the business 9. Advantages of a c corp: Answer Limited liability for stockholders 10. Disadvantages of a c corp: Answer double taxation (one on corp profits and again ondividends) 11. Requirements for an S corp: Answer - No more than 100 shareholders who are usresidents - Filing of IRS form 2553 - Federal income taxes are paid only on income distributed to members as ordinaryincome 12. LLC: Answer - Like an S corp, Federal income taxes are paid only on income distributedto members as ordinary income 13. Joint Venture (JV): Answer Special business arrangement that exists when two or morecompanies join to undertake a specific project 14. Purpose of licensing: Answer protect the health, safety, and welfare of the public 15. Tennessee Board for Licensing Contractors: Answer mission is to assure that qualityand fair construction practices exist in all phases of the industry so as to protect thesafety and welfare of consumers and contractors 16. Contractor's License is needed for: Answer - $25,000 or more for any single projectdefined as construction, bid or contracted directly to the owner - Subcontractors who perform $25,000 or more in electrical, mechanical, plumbing,and HVAC projects - Construction management of any kind where the value exceeds $25,000 17. LLP Limited Licensed Plumber: Answer Individuals performing plumbing work forprojects less than $25,000 must be licensed as an LLP 18. LLE Limited Licensed Electricians: Answer Electricians performing electrical work forprojects less than $25,000 may be required to obtain an LLE if local licensing is notoffered