1
NASCLA CONTRACTORS GUIDE ARKANSAS 8TH
EDITION NEWEST ACTUAL 2025/2026 WITH
COMPLETE QUESTIONS AND ANSWERS
.VERIFED/GRADED A+/A
Poor _________ and inadequate ____________ are overriding factors in business
failure - (ANSWER)Planning; Management
entrepreneur - (ANSWER)A person engaged in strategic activities that involve the
initiation and development of a new business, created to build long term value
and steady cash flow
Calculated risk - (ANSWER)a risk that is well - thought through where all
outcomes are considered
rewards of owning your own business - (ANSWER)- being your own boss
-having flexibility of time
-having more freedom and independence
-making your own decisions
-receiving personal satisfaction from completing a job
A business plan should be a _________ ____________ that changes as your
business and the market change - (ANSWER)living document
Business plan key functions - (ANSWER)1. Planning tool
, 2
2. Loan or investor document
3. Benchmark tool
Elements of a business plan - (ANSWER)1. cover page
2. Executive summary
3. Company summary
4. Products and Services
5. Market analysis
6. Market strategy
7. Financial plan
Business Plan Pitfalls - (ANSWER)- make sure your assumptions are realistic
- keep the language simple
- cover the risk as well as the opportunities
- analyze your competition thoroughly
Sole Proprietorship - (ANSWER)this business structure offers easy formation and
operation, however, unlimited personal liability is a concern because the business
and owner are considered the same legal entity
Advantages of a Sole Proprietorship - (ANSWER)- Minimal legal restrictions
- simple ownership form
, 3
- low startup cost
- sole ownership profits
- freedom in decision making process
Disadvantages of Sole Proprietorship - (ANSWER)- unlimited personal liability
- less available capital
- possible difficulty obtaining long-term financing
-dissolution of the business in the event of the owners death
Partnership - (ANSWER)can bring together two or more people with strengths
and resources in different areas but also allow for unlimited personal liability of
general partners. to reduce conflicts among partners, responsibilities and
business goals must be clearly outlined at the beginning of the business
arrangement
Advantages of a general partnership - (ANSWER)-ease of formation
-direct profit rewards
-larger management base than that of a sole proprietorship
General partnership - (ANSWER)can be formed through an oral agreement, but it
is recommended that a written partnership agreement be made
limited partnership - (ANSWER)A partnership with one or more general partners
and one or more limited partners.
NASCLA CONTRACTORS GUIDE ARKANSAS 8TH
EDITION NEWEST ACTUAL 2025/2026 WITH
COMPLETE QUESTIONS AND ANSWERS
.VERIFED/GRADED A+/A
Poor _________ and inadequate ____________ are overriding factors in business
failure - (ANSWER)Planning; Management
entrepreneur - (ANSWER)A person engaged in strategic activities that involve the
initiation and development of a new business, created to build long term value
and steady cash flow
Calculated risk - (ANSWER)a risk that is well - thought through where all
outcomes are considered
rewards of owning your own business - (ANSWER)- being your own boss
-having flexibility of time
-having more freedom and independence
-making your own decisions
-receiving personal satisfaction from completing a job
A business plan should be a _________ ____________ that changes as your
business and the market change - (ANSWER)living document
Business plan key functions - (ANSWER)1. Planning tool
, 2
2. Loan or investor document
3. Benchmark tool
Elements of a business plan - (ANSWER)1. cover page
2. Executive summary
3. Company summary
4. Products and Services
5. Market analysis
6. Market strategy
7. Financial plan
Business Plan Pitfalls - (ANSWER)- make sure your assumptions are realistic
- keep the language simple
- cover the risk as well as the opportunities
- analyze your competition thoroughly
Sole Proprietorship - (ANSWER)this business structure offers easy formation and
operation, however, unlimited personal liability is a concern because the business
and owner are considered the same legal entity
Advantages of a Sole Proprietorship - (ANSWER)- Minimal legal restrictions
- simple ownership form
, 3
- low startup cost
- sole ownership profits
- freedom in decision making process
Disadvantages of Sole Proprietorship - (ANSWER)- unlimited personal liability
- less available capital
- possible difficulty obtaining long-term financing
-dissolution of the business in the event of the owners death
Partnership - (ANSWER)can bring together two or more people with strengths
and resources in different areas but also allow for unlimited personal liability of
general partners. to reduce conflicts among partners, responsibilities and
business goals must be clearly outlined at the beginning of the business
arrangement
Advantages of a general partnership - (ANSWER)-ease of formation
-direct profit rewards
-larger management base than that of a sole proprietorship
General partnership - (ANSWER)can be formed through an oral agreement, but it
is recommended that a written partnership agreement be made
limited partnership - (ANSWER)A partnership with one or more general partners
and one or more limited partners.
