Which business organization is regulated the least by the government? - ANSWER Sole
Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the per-
centage of the company they own. - ANSWER false
What business organization provides the most financial protection for the owners? - AN-
SWER Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - ANSWER
false
Can a corporation actually be listed as the sole owner of a property? - ANSWER yes
Limited Liability Companies have the ability to be passed down to family members when an
owner (member) dies. - ANSWER false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they
have. - ANSWER false
Start-up and operating costs must be considered when creating a ____________ . - AN-
SWER financial plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - ANSWER business plan
1
,A _______________ combines the liability protection of a corporation with the favorable tax
treatment of a partnership or sole proprietorship. - ANSWER LLC
_____________ have a partner who contributes funds and or property to the business, but
does not provide any services or have any say in the day to day business. - ANSWER Lim-
ited Partnerships
It is a good idea to research business names through the ___________ website to avoid cre-
ating a business name that is too similar to another registered name. - ANSWER Secre-
tary of State
One pitfall of a General Partnership is that each partner is personally responsible for the
debts of the business, and this debt responsibility is not limited to the percentage of owner-
ship. - ANSWER True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is
referred to as ___________________. - ANSWER S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of
what the company wants to do and become. - ANSWER Mission Statement
Identifying probable customers and attracting them to your product or service is known as
_______________. - ANSWER Marketing
The Construction Services Commission shall be comprised of ______ members. - AN-
SWER nine
Which of the following is NOT required from an applicant before being issued a license? -
ANSWER proof of incorporation
2
, Each contractor licensee under a license issued under this chapter shall complete _____
hours of approved continuing education. - ANSWER 6
Contractor licenses are issued on a _____ renewal cycle. - ANSWER 2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines, ci-
tations and judgements. - ANSWER True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - ANSWER all of the above
Can an independent contractor be a qualifier for a business entity? - ANSWER no
The division must be notified within _______ days, in writing, that a qualifying officer has
ceased association with a company. - ANSWER 10
If a qualifying person leaves a company, the license will remain active for ______ . - AN-
SWER 60 days
A home owner who builds three residential structures in a five year period is still exempt
from licensing requirements. - ANSWER True
A person engaged in the renovation of a commercial building, who works without compen-
sation, is exempt from licensure requirements. - ANSWER False
3
Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the per-
centage of the company they own. - ANSWER false
What business organization provides the most financial protection for the owners? - AN-
SWER Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - ANSWER
false
Can a corporation actually be listed as the sole owner of a property? - ANSWER yes
Limited Liability Companies have the ability to be passed down to family members when an
owner (member) dies. - ANSWER false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they
have. - ANSWER false
Start-up and operating costs must be considered when creating a ____________ . - AN-
SWER financial plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - ANSWER business plan
1
,A _______________ combines the liability protection of a corporation with the favorable tax
treatment of a partnership or sole proprietorship. - ANSWER LLC
_____________ have a partner who contributes funds and or property to the business, but
does not provide any services or have any say in the day to day business. - ANSWER Lim-
ited Partnerships
It is a good idea to research business names through the ___________ website to avoid cre-
ating a business name that is too similar to another registered name. - ANSWER Secre-
tary of State
One pitfall of a General Partnership is that each partner is personally responsible for the
debts of the business, and this debt responsibility is not limited to the percentage of owner-
ship. - ANSWER True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is
referred to as ___________________. - ANSWER S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of
what the company wants to do and become. - ANSWER Mission Statement
Identifying probable customers and attracting them to your product or service is known as
_______________. - ANSWER Marketing
The Construction Services Commission shall be comprised of ______ members. - AN-
SWER nine
Which of the following is NOT required from an applicant before being issued a license? -
ANSWER proof of incorporation
2
, Each contractor licensee under a license issued under this chapter shall complete _____
hours of approved continuing education. - ANSWER 6
Contractor licenses are issued on a _____ renewal cycle. - ANSWER 2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines, ci-
tations and judgements. - ANSWER True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - ANSWER all of the above
Can an independent contractor be a qualifier for a business entity? - ANSWER no
The division must be notified within _______ days, in writing, that a qualifying officer has
ceased association with a company. - ANSWER 10
If a qualifying person leaves a company, the license will remain active for ______ . - AN-
SWER 60 days
A home owner who builds three residential structures in a five year period is still exempt
from licensing requirements. - ANSWER True
A person engaged in the renovation of a commercial building, who works without compen-
sation, is exempt from licensure requirements. - ANSWER False
3
