NASCLA Contractors Guide Arkansas 8th Edition
Complete NASCLA Arkansas 8th Edition Exam Prep Guide for Contractors License
Study online at https://quizlet.com/_hrntqu
1. Poor _________ Planning; Management
and inadequate
____________ are
overriding factors
in business failure
2. entrepreneur A person engaged in strategic activities that involve the initiation and develop-
ment of a new business, created to build long term value and steady cash flow
3. Calculated risk a risk that is well - thought through where all outcomes are considered
4. rewards of own- - being your own boss
ing your own busi- -having flexibility of time
ness -having more freedom and independence
-making your own decisions
-receiving personal satisfaction from completing a job
5. A business living document
plan should
be a _________
____________ that
changes as your
business and the
market change
6. Business plan key 1. Planning tool
functions 2. Loan or investor document
3. Benchmark tool
7. Elements of a 1. cover page
business plan 2. Executive summary
3. Company summary
4. Products and Services
Page 1
, NASCLA Contractors Guide Arkansas 8th Edition
Complete NASCLA Arkansas 8th Edition Exam Prep Guide for Contractors License
Study online at https://quizlet.com/_hrntqu
5. Market analysis
6. Market strategy
7. Financial plan
8. Business Plan Pit- - make sure your assumptions are realistic
falls - keep the language simple
- cover the risk as well as the opportunities
- analyze your competition thoroughly
9. Sole Proprietor- this business structure offers easy formation and operation, however, unlimited
ship personal liability is a concern because the business and owner are considered
the same legal entity
10. Advantages of a - Minimal legal restrictions
Sole Proprietor- - simple ownership form
ship - low startup cost
- sole ownership profits
- freedom in decision making process
11. Disadvantages of - unlimited personal liability
Sole Proprietor- - less available capital
ship - possible difficulty obtaining long-term financing
-dissolution of the business in the event of the owners death
12. Partnership 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
13. Advantages of a -ease of formation
general partner- -direct profit rewards
ship -larger management base than that of a sole proprietorship
Page 2
, NASCLA Contractors Guide Arkansas 8th Edition
Complete NASCLA Arkansas 8th Edition Exam Prep Guide for Contractors License
Study online at https://quizlet.com/_hrntqu
14. General partner- can be formed through an oral agreement, but it is recommended that a written
ship partnership agreement be made
15. limited partner- A partnership with one or more general partners and one or more limited
ship partners.
16. disadvantages of - Unlimited personal liability of general partners
a General Part- - multiple decision makers
nership - limited life of the business
- Changes of partners or partnership agreement may be difficult
- partnership dissolves in the event of the death of a general partner
17. Partnership, Lim- Arkansas secretary of state
ited liability part-
nerships, and
Limited liabili-
ty partnerships
must register
through the.....
18. C Corporation Offer liability protection to the owners and easy ownership transfer through stock
sales. this business structure is more complex to operate and shareholders may
be "double-taxed" on their earnings
19. Advantages of a C - Separate legal entity
Corporation - Limited liability for stockholders
- Unlimited life of the business
- Availability of capital resources
- Transfer of ownership through sale of stock
20. Disadvantages of - Complex and expensive organization
a C Corporation - Limitation on corporate activities and decisions by the corporate charter
Page 3
Complete NASCLA Arkansas 8th Edition Exam Prep Guide for Contractors License
Study online at https://quizlet.com/_hrntqu
1. Poor _________ Planning; Management
and inadequate
____________ are
overriding factors
in business failure
2. entrepreneur A person engaged in strategic activities that involve the initiation and develop-
ment of a new business, created to build long term value and steady cash flow
3. Calculated risk a risk that is well - thought through where all outcomes are considered
4. rewards of own- - being your own boss
ing your own busi- -having flexibility of time
ness -having more freedom and independence
-making your own decisions
-receiving personal satisfaction from completing a job
5. A business living document
plan should
be a _________
____________ that
changes as your
business and the
market change
6. Business plan key 1. Planning tool
functions 2. Loan or investor document
3. Benchmark tool
7. Elements of a 1. cover page
business plan 2. Executive summary
3. Company summary
4. Products and Services
Page 1
, NASCLA Contractors Guide Arkansas 8th Edition
Complete NASCLA Arkansas 8th Edition Exam Prep Guide for Contractors License
Study online at https://quizlet.com/_hrntqu
5. Market analysis
6. Market strategy
7. Financial plan
8. Business Plan Pit- - make sure your assumptions are realistic
falls - keep the language simple
- cover the risk as well as the opportunities
- analyze your competition thoroughly
9. Sole Proprietor- this business structure offers easy formation and operation, however, unlimited
ship personal liability is a concern because the business and owner are considered
the same legal entity
10. Advantages of a - Minimal legal restrictions
Sole Proprietor- - simple ownership form
ship - low startup cost
- sole ownership profits
- freedom in decision making process
11. Disadvantages of - unlimited personal liability
Sole Proprietor- - less available capital
ship - possible difficulty obtaining long-term financing
-dissolution of the business in the event of the owners death
12. Partnership 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
13. Advantages of a -ease of formation
general partner- -direct profit rewards
ship -larger management base than that of a sole proprietorship
Page 2
, NASCLA Contractors Guide Arkansas 8th Edition
Complete NASCLA Arkansas 8th Edition Exam Prep Guide for Contractors License
Study online at https://quizlet.com/_hrntqu
14. General partner- can be formed through an oral agreement, but it is recommended that a written
ship partnership agreement be made
15. limited partner- A partnership with one or more general partners and one or more limited
ship partners.
16. disadvantages of - Unlimited personal liability of general partners
a General Part- - multiple decision makers
nership - limited life of the business
- Changes of partners or partnership agreement may be difficult
- partnership dissolves in the event of the death of a general partner
17. Partnership, Lim- Arkansas secretary of state
ited liability part-
nerships, and
Limited liabili-
ty partnerships
must register
through the.....
18. C Corporation Offer liability protection to the owners and easy ownership transfer through stock
sales. this business structure is more complex to operate and shareholders may
be "double-taxed" on their earnings
19. Advantages of a C - Separate legal entity
Corporation - Limited liability for stockholders
- Unlimited life of the business
- Availability of capital resources
- Transfer of ownership through sale of stock
20. Disadvantages of - Complex and expensive organization
a C Corporation - Limitation on corporate activities and decisions by the corporate charter
Page 3
