NASCLA BUSINESS LAW QUESTIONS WITH COMPLETE SOLUTIONS

A form of business ownership is least regulated correct answer: sole proprietor Under which form of business organization are all investors fully liable for all debts of the business. correct answer: partnership owner who is looking for maximum protection from personal liability correct answer: S corporation worst possible error in estimating correct answer: leaving something out the paperwork related to purchase order, credit card receipts and so on... correct answer: source documents A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time. correct answer: Income Statement a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period. correct answer: Balance Sheet A summary that shows total income and spending for a given time period correct answer: Cash Flow Statement term use for the method of allocating the cost of an asset over its useful life correct answer: Depreciation number of hours in a define Fair Labor Standard Acts workweek correct answer: 168 hours (7 x 24 hours) taxes deducted solely from employee's wages correct answer: State Income Tax