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ENTREPRENEURSHIP AND SMALL BUSINESS
CERTIFICATION EXAM 2025 NEWEST WITH
ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS (100% GUARANTEED PASS!!!)
Business Plan .....answer.....A business plan is a written document that
describes in detail how a business defines its objectives and how it is to go
about achieving its goals. Lays out a written roadmap for the firm from
marketing, financial, and operational standpoints.
Legal structures for a corporation .....answer.....1. C Corp:
C Corporation: the owners (shareholders) are taxed separately from the
entity. Are also subject to corporate income taxation. The taxing of profits
from the business is at both corporate AND personal levels, creating a
DOUBLE TAXATION situation.
- Owners are not personally liable.
- separates owners' assets and income from that of the corporation. Limits
the liability of investors and firm owners since the most that they can lose in
the business's failure is the amount they have invested in it.
2. S Corp:
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Shareholders of S corps report the flow-through of income and losses on
their personal tax returns and are assessed tax at their individual income tax
rates. This allows S corps to avoid double taxation on the corporate income.
- Owners are not personally liable.
- protects business owners' personal assets from any corporate liability and
passes through income, usually in the form of dividends, to avoid double
corporate and personal taxation. Provides LIMITED LIABILITY protection
but also offers corporations with 100 shareholders to be taxed as a
partnership.
3. Limited Liability Corp (LLC):
A limited liability company, which is a type of legal entity that can be used
when forming a business that offers protection to the owner(s) from
personal liability for debts and other obligations that a business might incur.
This means that creditors CANNOT go after the owner's personal assets. In
other words, the personal assets of the owner can not be used for legal
claims against the business.
- Owners are not personally liable.
**** An LLC is a legal business structure, while S Corporation is a tax
classification that's available to some small businesses. Both LLCs and corps
can elect S Corp taxation by filing a form with the IRS.
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4. Sole Proprietorship:
easy to form and gives you complete control of yo
Business Ownership .....answer.....1. CEO: Chief Executive Officer is the
highest ranked. Oversees a business's operations and resources and makes
the major decisions for the company. Reports to the board of directors
2. COO: Chief Operating Officer is responsible for overseeing the day-to-day
administrative and operational functions of a business. Second in command.
3. CFO: Chief Financial Officer oversees a company's finances. Creates
budgets, analyzes financial data, and forecasts company's profits
4. CIO- Chief Information Officer develops policies and structures to protect
company data.
Confidentiality Agreement .....answer.....A signed agreement stating that an
entity will not disclose information agreed upon by all parties in an
arrangement.
Contract .....answer.....An agreement between an employee and a company
outlining obligations and terms of employment.
ENTREPRENEURSHIP AND SMALL BUSINESS
CERTIFICATION EXAM 2025 NEWEST WITH
ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS (100% GUARANTEED PASS!!!)
Business Plan .....answer.....A business plan is a written document that
describes in detail how a business defines its objectives and how it is to go
about achieving its goals. Lays out a written roadmap for the firm from
marketing, financial, and operational standpoints.
Legal structures for a corporation .....answer.....1. C Corp:
C Corporation: the owners (shareholders) are taxed separately from the
entity. Are also subject to corporate income taxation. The taxing of profits
from the business is at both corporate AND personal levels, creating a
DOUBLE TAXATION situation.
- Owners are not personally liable.
- separates owners' assets and income from that of the corporation. Limits
the liability of investors and firm owners since the most that they can lose in
the business's failure is the amount they have invested in it.
2. S Corp:
,2|Page
Shareholders of S corps report the flow-through of income and losses on
their personal tax returns and are assessed tax at their individual income tax
rates. This allows S corps to avoid double taxation on the corporate income.
- Owners are not personally liable.
- protects business owners' personal assets from any corporate liability and
passes through income, usually in the form of dividends, to avoid double
corporate and personal taxation. Provides LIMITED LIABILITY protection
but also offers corporations with 100 shareholders to be taxed as a
partnership.
3. Limited Liability Corp (LLC):
A limited liability company, which is a type of legal entity that can be used
when forming a business that offers protection to the owner(s) from
personal liability for debts and other obligations that a business might incur.
This means that creditors CANNOT go after the owner's personal assets. In
other words, the personal assets of the owner can not be used for legal
claims against the business.
- Owners are not personally liable.
**** An LLC is a legal business structure, while S Corporation is a tax
classification that's available to some small businesses. Both LLCs and corps
can elect S Corp taxation by filing a form with the IRS.
, 3|Page
4. Sole Proprietorship:
easy to form and gives you complete control of yo
Business Ownership .....answer.....1. CEO: Chief Executive Officer is the
highest ranked. Oversees a business's operations and resources and makes
the major decisions for the company. Reports to the board of directors
2. COO: Chief Operating Officer is responsible for overseeing the day-to-day
administrative and operational functions of a business. Second in command.
3. CFO: Chief Financial Officer oversees a company's finances. Creates
budgets, analyzes financial data, and forecasts company's profits
4. CIO- Chief Information Officer develops policies and structures to protect
company data.
Confidentiality Agreement .....answer.....A signed agreement stating that an
entity will not disclose information agreed upon by all parties in an
arrangement.
Contract .....answer.....An agreement between an employee and a company
outlining obligations and terms of employment.
