NASCLA CONTRACTORS GUIDE TO
BUSINESS, LAW, AND PROJECT
MANAGEMENT EXAM
NASCLA CONTRACTORS GUIDE TO BUSINESS, LAW, AND PROJECT MANAGEMENT
EXAM A+ GRADED
Elements of a Business Plan - Accurate Answer ✅✅Cover Page, Executive Summary, Company Summary, Products & Services, Market Analysis, Marketing Strategy, and Financial Plan.
Sole Proprietorships - Accurate 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 - Accurate 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 - Accurate 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 - Accurate 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 returns.
Limited Liability Corporation (LLC) - Accurate Answer ✅✅-Shares characteristics of both sole proprietorship and corporate identities
- Ownership in the LLC is invested in memberships rather than shares of stock
-Offers some protection from liability for actions taken by your company, but does not protect from liability for personal actions. -Like an S Corp, federal income taxes are paid only on income distributed to members as ordinary income. An LLC with more than 1 owner may elect to be taxed as a partnership or as a corporate entity.
NC Licensing Board for General Contractors - Accurate Answer ✅✅LICENSING BOARD TO PROTECT THE PUBLIC
Commercial General Liability (CGL) - Accurate Answer ✅✅CGL Insurance offers basic liability coverage. Covers 4 types of injuries:
1. bodily injury for individuals who are NOT employees
2. damage or loss to property NOT belonging to the business
3. personal injury, including slander or damage to rep
BUSINESS, LAW, AND PROJECT
MANAGEMENT EXAM
NASCLA CONTRACTORS GUIDE TO BUSINESS, LAW, AND PROJECT MANAGEMENT
EXAM A+ GRADED
Elements of a Business Plan - Accurate Answer ✅✅Cover Page, Executive Summary, Company Summary, Products & Services, Market Analysis, Marketing Strategy, and Financial Plan.
Sole Proprietorships - Accurate 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 - Accurate 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 - Accurate 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 - Accurate 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 returns.
Limited Liability Corporation (LLC) - Accurate Answer ✅✅-Shares characteristics of both sole proprietorship and corporate identities
- Ownership in the LLC is invested in memberships rather than shares of stock
-Offers some protection from liability for actions taken by your company, but does not protect from liability for personal actions. -Like an S Corp, federal income taxes are paid only on income distributed to members as ordinary income. An LLC with more than 1 owner may elect to be taxed as a partnership or as a corporate entity.
NC Licensing Board for General Contractors - Accurate Answer ✅✅LICENSING BOARD TO PROTECT THE PUBLIC
Commercial General Liability (CGL) - Accurate Answer ✅✅CGL Insurance offers basic liability coverage. Covers 4 types of injuries:
1. bodily injury for individuals who are NOT employees
2. damage or loss to property NOT belonging to the business
3. personal injury, including slander or damage to rep
