NASCLA Contractors Guide to Business, Law, and Project Management Questions With Complete Solutions

Elements of a Business Plan correct answer: Cover Page, Executive Summary, Company Summary, Products & Services, Market Analysis, Marketing Strategy, and Financial Plan Sole Proprietorships correct answer: Adv: Min legal restrictions, simple ownership form, low startup costs, sole ownership of profits, freedom in decision making process. Disadv: Unlimited personal liability, less available capital, possible difficulty in obtaining long-term financing, dissolution of the business in the event of the owner's death. *SOLE PROPRIETORSHIP THE EASIEST TO SET UP Partnerships correct answer: -Can be formed through an oral agreement. -General Partners own the assets of the company. -Limited partnership consists of one or more general partners and one or more limited partners. -Limited partners have limited liability in the company. -If a general partner leaves the company, the partnership dissolves -All owners in a general partnership have personal and unlimited liability for all actions undertaken in the name of the business, including all debts -Limited Partners have no personal liability for the business. *GENERAL PARNERSHIPS EXIST AS LONG AS PARTNERS REMAIN *EACH PARTNER IS TOTALLY LIABLE FOR ACTS IN THE PARTNERSHIP C Corporations correct answer: -Incorporation gives your business a legal existence that goes beyond the life of its shareholders die. -The owners of the corp - known as stockholders - are not personally liable for the losses of the business. S Corporations correct answer: -Can avoid double federal taxation by electing to be treated as an S Corp -S Corp passes its items of income, loss, deduction, and credits through to its shareholders to be included on their separate