1
NASCLA BUSINESS LAW AND MANAGMENT
EXAM SC WITH VERIFIED SOLUTIONS
Sole Proprietorship - correct-answer -a business owned and managed by a single
individual
Simplest form to set up
unlimited Liability
Partnerships - correct-answer -Business organizations in which two or more
persons share responsibilities, costs, profits, and losses.
C Corporations - correct-answer -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 - correct-answer -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
, 2
Limited liability company - correct-answer -A business organization in which the
business (not the owner) is liable for the company's debts
joint venture - correct-answer -an agreement between two or more companies to
share a business project
Reserving business Name - correct-answer -Register with secretary of state
Purpose of licensing - correct-answer -Protect Health, Safety, and welfare of the
public
When is a Contractors license Needed? - correct-answer -Excess of $5000
Elements of a Business plan - correct-answer -Cover Page, Executive summary,
Company summary, Products and services, Market analysis, Marketing Stragety,
Financle plan
, 3
Renewal of License - correct-answer -Must be renewed July 1st of each odd year
at a cost of $160
Bond - correct-answer -Risk Transfer mechanism Between a surety, the contractor,
and the project owner.
Bond Language - correct-answer -Total Dollar amount required for the bond,
Length of the bond, Requirments for notice of defect or lack of maintance, Bond
enforcement
Performance Bond - correct-answer -Guarantees that the contractor will complete
a contract within its time frame an conditions
Payment Bond - correct-answer -Guarantees Subcontractos and suppliers that
they will be paid for work if they perform properly under the contract
Maintenance Bond - correct-answer -Guarantees that for a stated period, typically
for one year, no defective workmanship or material will appear in the completed
project.
NASCLA BUSINESS LAW AND MANAGMENT
EXAM SC WITH VERIFIED SOLUTIONS
Sole Proprietorship - correct-answer -a business owned and managed by a single
individual
Simplest form to set up
unlimited Liability
Partnerships - correct-answer -Business organizations in which two or more
persons share responsibilities, costs, profits, and losses.
C Corporations - correct-answer -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 - correct-answer -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
, 2
Limited liability company - correct-answer -A business organization in which the
business (not the owner) is liable for the company's debts
joint venture - correct-answer -an agreement between two or more companies to
share a business project
Reserving business Name - correct-answer -Register with secretary of state
Purpose of licensing - correct-answer -Protect Health, Safety, and welfare of the
public
When is a Contractors license Needed? - correct-answer -Excess of $5000
Elements of a Business plan - correct-answer -Cover Page, Executive summary,
Company summary, Products and services, Market analysis, Marketing Stragety,
Financle plan
, 3
Renewal of License - correct-answer -Must be renewed July 1st of each odd year
at a cost of $160
Bond - correct-answer -Risk Transfer mechanism Between a surety, the contractor,
and the project owner.
Bond Language - correct-answer -Total Dollar amount required for the bond,
Length of the bond, Requirments for notice of defect or lack of maintance, Bond
enforcement
Performance Bond - correct-answer -Guarantees that the contractor will complete
a contract within its time frame an conditions
Payment Bond - correct-answer -Guarantees Subcontractos and suppliers that
they will be paid for work if they perform properly under the contract
Maintenance Bond - correct-answer -Guarantees that for a stated period, typically
for one year, no defective workmanship or material will appear in the completed
project.
