AZ Statutes and Rules Flashcards
EXAM QUESTIONS AND ALL
CORRECT ANSWERS 100% SOLVED
AND GUARANTEED SUCCESS!!
Topic Correct Answer
Fixed price contract Lump sum contract
Contractor designs and builds Design-build
Changes before bids open Addenda
Changes after contract begins Change order
Guarantees completion Performance bond
Protects suppliers/workers Payment bond
Bid bond guarantees Successful bidder enters contract
QUESTION 1
Which of the following is considered a form of business organization?
A) Corporation
B) Partnership
C) Sole proprietorship
D) Limited liability company
CORRECT ANSWER: Sole proprietorship
RATIONALE:
A sole proprietorship is one of the basic forms of business organization where one individual
owns and controls the business and is responsible for all debts and obligations.
QUESTION 2
Which of the following is an advantage of the sole ownership form of business?
A) Limited liability protection
B) Can be sold or altered at will
,C) Separate legal identity from owner
D) Ownership can never be transferred
CORRECT ANSWER: Can be sold or altered at will
RATIONALE:
A sole proprietor has complete control over the business and may change, sell, or discontinue
the business at their discretion.
QUESTION 3
When uncertain about what type of entity is best for a company, seek advice from:
A) Accountant only
B) Legal counselor
C) Employee
D) Customer
CORRECT ANSWER: Legal counselor
RATIONALE:
A legal counselor can advise on the legal advantages, liabilities, and requirements of different
business structures.
QUESTION 4
Which one of the following is the simplest form of business to set up?
A) Corporation
B) Limited partnership
C) Sole proprietorship
D) Limited liability company
CORRECT ANSWER: Sole proprietorship
RATIONALE:
A sole proprietorship requires the least amount of paperwork and is the easiest business
structure to establish.
QUESTION 5
, An entity whose owner is liable for all debts is:
A) Corporation
B) Limited liability company
C) Sole proprietorship
D) Limited partnership
CORRECT ANSWER: Sole proprietorship
RATIONALE:
A sole proprietor has unlimited personal liability for business debts and obligations.
QUESTION 6
What is the advantage of being a sole proprietor?
A) Owner makes all the decisions
B) Owner has no responsibility for debts
C) Government controls business operations
D) Requires multiple owners
CORRECT ANSWER: Owner makes all the decisions
RATIONALE:
The sole proprietor has complete authority over business decisions.
QUESTION 7
What business type pays the owner as individual income?
A) Corporation
B) Partnership
C) Sole proprietorship
D) Limited partnership
CORRECT ANSWER: Sole proprietorship
RATIONALE:
Income from a sole proprietorship is reported as the owner's personal income.
EXAM QUESTIONS AND ALL
CORRECT ANSWERS 100% SOLVED
AND GUARANTEED SUCCESS!!
Topic Correct Answer
Fixed price contract Lump sum contract
Contractor designs and builds Design-build
Changes before bids open Addenda
Changes after contract begins Change order
Guarantees completion Performance bond
Protects suppliers/workers Payment bond
Bid bond guarantees Successful bidder enters contract
QUESTION 1
Which of the following is considered a form of business organization?
A) Corporation
B) Partnership
C) Sole proprietorship
D) Limited liability company
CORRECT ANSWER: Sole proprietorship
RATIONALE:
A sole proprietorship is one of the basic forms of business organization where one individual
owns and controls the business and is responsible for all debts and obligations.
QUESTION 2
Which of the following is an advantage of the sole ownership form of business?
A) Limited liability protection
B) Can be sold or altered at will
,C) Separate legal identity from owner
D) Ownership can never be transferred
CORRECT ANSWER: Can be sold or altered at will
RATIONALE:
A sole proprietor has complete control over the business and may change, sell, or discontinue
the business at their discretion.
QUESTION 3
When uncertain about what type of entity is best for a company, seek advice from:
A) Accountant only
B) Legal counselor
C) Employee
D) Customer
CORRECT ANSWER: Legal counselor
RATIONALE:
A legal counselor can advise on the legal advantages, liabilities, and requirements of different
business structures.
QUESTION 4
Which one of the following is the simplest form of business to set up?
A) Corporation
B) Limited partnership
C) Sole proprietorship
D) Limited liability company
CORRECT ANSWER: Sole proprietorship
RATIONALE:
A sole proprietorship requires the least amount of paperwork and is the easiest business
structure to establish.
QUESTION 5
, An entity whose owner is liable for all debts is:
A) Corporation
B) Limited liability company
C) Sole proprietorship
D) Limited partnership
CORRECT ANSWER: Sole proprietorship
RATIONALE:
A sole proprietor has unlimited personal liability for business debts and obligations.
QUESTION 6
What is the advantage of being a sole proprietor?
A) Owner makes all the decisions
B) Owner has no responsibility for debts
C) Government controls business operations
D) Requires multiple owners
CORRECT ANSWER: Owner makes all the decisions
RATIONALE:
The sole proprietor has complete authority over business decisions.
QUESTION 7
What business type pays the owner as individual income?
A) Corporation
B) Partnership
C) Sole proprietorship
D) Limited partnership
CORRECT ANSWER: Sole proprietorship
RATIONALE:
Income from a sole proprietorship is reported as the owner's personal income.
