NASCLA Business Law and Managment
EXAM SC
Sole Proprietorship - ANS a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
Partnerships - ANS Business organizations in which two or more persons share responsibilities,
costs, profits, and losses.
C Corporations - ANS Corporations that have no restrictions on who owns their shares or the
number of shareholders; they cannot qualify for subchapter S tax treatment and are subject to
direct taxation
S corporation - ANS A unique government creation that looks like a corporation but is taxed like
sole proprietorships and partnerships
No more than 100 shareholders
FILING IRS FORM 2553
Limited liability company - ANS A business organization in which the business (not the owner)
is liable for the company's debts
joint venture - ANS an agreement between two or more companies to share a business project
Reserving business Name - ANS Register with secretary of state
Purpose of licensing - ANS Protect Health, Safety, and welfare of the public
When is a Contractors license Needed? - ANS Excess of $5000
cease and desist order - ANS ruling requiring a company to stop an unfair business practice
from performing work without a license
Monetary limitations for general and mechanical contractors - ANS determined by the financial
net worth of the entity seeking licensure
Group Limitations - ANS Divided into groups according to net worth.
, Reciprocity - ANS South Carolina has a reciprocal agreement with certain states but licensee
must still pass the business and law exam.
Property insurance - ANS A type of insurance that covers damage to property, such as a home.
liability insurance - ANS insurance that provides protection from claims arising from injuries or
damage to other people or property
Business Owners Policy (BOP) - ANS Property and liability Coverage are bundles under
business owners policies
Automobile Insurance - ANS Provides payments for both liability and physical damage to
vehicles
Burglary and Theft Insurance - ANS Loss or damage by burglary, theft, Larceny, Robbery,
Forgery, Fraud, and vandalism.
Key Man Life Insurance - ANS This type of insurance is available as life insurance or disability
insurance to protect continuing sucess of your business.
Coverage Gaps and Overlaps - ANS It is important to evaluate all your insurance coverage.
Using one insurer may minimize gaps and overlaps in coverage.
Bid Documents include - ANS An invitation to Bid
Bid instructions
Bid forms
Supplements
Ethics in bidding - ANS Bid Shopping
Bid Peddling
Bid Rigging
Bid Shopping - ANS The practice of revealing the sub-bid of one subcontractor to obtain a
lower price from another subcontractor.
Bid Peddling - ANS approaching the general contractor once you won the job and try to get the
price lower
bid rigging - ANS Contractors Coordinate their bids to fix the award outcome of a project
Total Material Unit Cost - ANS Price Per unit x Number of units Needed
Required Contract Elements - ANS Acceptance, Consideration, competent parties, and legal
purpose
EXAM SC
Sole Proprietorship - ANS a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
Partnerships - ANS Business organizations in which two or more persons share responsibilities,
costs, profits, and losses.
C Corporations - ANS Corporations that have no restrictions on who owns their shares or the
number of shareholders; they cannot qualify for subchapter S tax treatment and are subject to
direct taxation
S corporation - ANS A unique government creation that looks like a corporation but is taxed like
sole proprietorships and partnerships
No more than 100 shareholders
FILING IRS FORM 2553
Limited liability company - ANS A business organization in which the business (not the owner)
is liable for the company's debts
joint venture - ANS an agreement between two or more companies to share a business project
Reserving business Name - ANS Register with secretary of state
Purpose of licensing - ANS Protect Health, Safety, and welfare of the public
When is a Contractors license Needed? - ANS Excess of $5000
cease and desist order - ANS ruling requiring a company to stop an unfair business practice
from performing work without a license
Monetary limitations for general and mechanical contractors - ANS determined by the financial
net worth of the entity seeking licensure
Group Limitations - ANS Divided into groups according to net worth.
, Reciprocity - ANS South Carolina has a reciprocal agreement with certain states but licensee
must still pass the business and law exam.
Property insurance - ANS A type of insurance that covers damage to property, such as a home.
liability insurance - ANS insurance that provides protection from claims arising from injuries or
damage to other people or property
Business Owners Policy (BOP) - ANS Property and liability Coverage are bundles under
business owners policies
Automobile Insurance - ANS Provides payments for both liability and physical damage to
vehicles
Burglary and Theft Insurance - ANS Loss or damage by burglary, theft, Larceny, Robbery,
Forgery, Fraud, and vandalism.
Key Man Life Insurance - ANS This type of insurance is available as life insurance or disability
insurance to protect continuing sucess of your business.
Coverage Gaps and Overlaps - ANS It is important to evaluate all your insurance coverage.
Using one insurer may minimize gaps and overlaps in coverage.
Bid Documents include - ANS An invitation to Bid
Bid instructions
Bid forms
Supplements
Ethics in bidding - ANS Bid Shopping
Bid Peddling
Bid Rigging
Bid Shopping - ANS The practice of revealing the sub-bid of one subcontractor to obtain a
lower price from another subcontractor.
Bid Peddling - ANS approaching the general contractor once you won the job and try to get the
price lower
bid rigging - ANS Contractors Coordinate their bids to fix the award outcome of a project
Total Material Unit Cost - ANS Price Per unit x Number of units Needed
Required Contract Elements - ANS Acceptance, Consideration, competent parties, and legal
purpose
