NOCTI General Management Newest Exam / NOCTI
General Management Preparation/NOCTI General
Management Practice Exam With Complete Questions
And Correct Answers| Brand New Version!
Corporation - ans -Legal entity that is separate from its owners.
Corporation Advantages - ans -1. Limited Liability
2. Attracting investors
3. Unlimited growth potential
4. Ability to raise capital by selling stock
Corporation Disadvantages - ans -1. Double Taxation
2. Complexity
3. Potential for conflicts
Limited Liability - ans -The owner or shareholder are not responsible for the debts
and liabilities of the corporation.
Double Taxation - ans -Corporation is taxed on its profits and shareholders are
taxed on dividends received from these profits.
Limited Liability Company (LLC) - ans -It combines the limited protection of a
corporation with the flexibility of a partnership.
Limited Liability Company Advantages - ans -1. Limited Liability
2. Flexibility
3. Pass-through taxation
Limited Liability Company Disadvantages - ans -1. Administrative requirements
2. Membership restrictions
3. Limited life
Partnership - ans -A business structure that involves two or more individuals
sharing ownership and profits.
, Partnership Advantages - ans -1. Shared responsibility
2. Tax benefits
3. Ease of formalities
Partnership Disadvantages - ans -1. Unlimited Liability
2. Conflict potential
3. Shared profits
Sole Proprietorship - ans -The simplest form of business ownership, where the
business is owned and operated by one individual.
Sole Proprietorship Advantages - ans -1. Simplicity
2. Control
3. Tax benefits
Sole Proprietorship Disadvantages - ans -1. Unlimited Liability
2. Limited access to capital
3. Limited expertise
S Corporation - ans -Type of corporation that elects to pass corporate income,
losses, deductions, and credits through to their shareholders for federal tax
purposes.
S Corporation Advantages - ans -1. limited liability
2. avoids double taxation
3. attractiveness to investors
4. pass-through taxation
S Corporation Disadvantages - ans -1. eligibility requirements
2. tax complexity
3. limited flexibility
Pass-Through Taxation - ans -Shareholders report their portion of the
corporation's income on their personal tax returns.
SWOT Analysis - ans -Most widely used strategic planning tool (Strengths,
Weaknesses, Opportunities, Threats).
General Management Preparation/NOCTI General
Management Practice Exam With Complete Questions
And Correct Answers| Brand New Version!
Corporation - ans -Legal entity that is separate from its owners.
Corporation Advantages - ans -1. Limited Liability
2. Attracting investors
3. Unlimited growth potential
4. Ability to raise capital by selling stock
Corporation Disadvantages - ans -1. Double Taxation
2. Complexity
3. Potential for conflicts
Limited Liability - ans -The owner or shareholder are not responsible for the debts
and liabilities of the corporation.
Double Taxation - ans -Corporation is taxed on its profits and shareholders are
taxed on dividends received from these profits.
Limited Liability Company (LLC) - ans -It combines the limited protection of a
corporation with the flexibility of a partnership.
Limited Liability Company Advantages - ans -1. Limited Liability
2. Flexibility
3. Pass-through taxation
Limited Liability Company Disadvantages - ans -1. Administrative requirements
2. Membership restrictions
3. Limited life
Partnership - ans -A business structure that involves two or more individuals
sharing ownership and profits.
, Partnership Advantages - ans -1. Shared responsibility
2. Tax benefits
3. Ease of formalities
Partnership Disadvantages - ans -1. Unlimited Liability
2. Conflict potential
3. Shared profits
Sole Proprietorship - ans -The simplest form of business ownership, where the
business is owned and operated by one individual.
Sole Proprietorship Advantages - ans -1. Simplicity
2. Control
3. Tax benefits
Sole Proprietorship Disadvantages - ans -1. Unlimited Liability
2. Limited access to capital
3. Limited expertise
S Corporation - ans -Type of corporation that elects to pass corporate income,
losses, deductions, and credits through to their shareholders for federal tax
purposes.
S Corporation Advantages - ans -1. limited liability
2. avoids double taxation
3. attractiveness to investors
4. pass-through taxation
S Corporation Disadvantages - ans -1. eligibility requirements
2. tax complexity
3. limited flexibility
Pass-Through Taxation - ans -Shareholders report their portion of the
corporation's income on their personal tax returns.
SWOT Analysis - ans -Most widely used strategic planning tool (Strengths,
Weaknesses, Opportunities, Threats).
