TN BUSINESS AND LAW EXAM 190 EXAMPREP
2026 COMPLETE QUESTIONS AND ANSWERS
ALREADY PASSED
◉ Factors in Business Failure.
Answer: poor planning and inadequate management
◉ Entrepreneur.
Answer: a person engaged in strategic activities that involve
initiation and development of a new business
◉ Calculated Risk.
Answer: something that is well thought through where all outcomes
are considered
◉ Rewards of Owning Your Own Business.
Answer: own boss, flexible time, freedom and independence,
personal satisfaction
◉ Challenges of Owning Business.
,Answer: long hours, manage cash flow, payroll, overwhelming
responsibility, finding/keeping employees, taxes, government
regulations
◉ Business Plan.
Answer: a document that outlines business strategies and goals
◉ Key Functions of a Business Plan.
Answer: planning tool, loan or investor document, benchmarking
tool
◉ Element of a Business Plan.
Answer: cover page, executive summary, company summary,
products and services, market analysis, market strategy, financial
plan
◉ What could be a pitfall to a business plan?.
Answer: must portray an accurate picture of business
◉ What are the different types of business structures?.
Answer: sole proprietorship, partnership, c corporation, s
corporation, limited liability company
,◉ Sole Proprietorship.
Answer: a business that has one individual as the owner who is
responsible for 100% of the decisions made on behalf of the
business and owns all of the business assets
◉ Advantages of a Sole Proprietorship.
Answer: minimal legal restrictions, simple ownership form, low
startup cost, sole owner of profits, freedom in decision making
◉ Disadvantages to a Sole Proprietorship.
Answer: unlimited liability, less available capital, possible difficulty
in obtaining long term financing, dissolution of the business in even
of owner death
◉ Partnership.
Answer: a business relationship between two or more persons who
join to carry on a trade or business. each person contributes money,
property, labor, or skill, and each partner expects to share in the
profits and losses of the business.
◉ Two types of partnership.
Answer: general and limited
◉ Advantages of a General Partnership.
, Answer: ease of formation, direct profit rewards, larger management
base than that of a sole proprietorship
◉ Disadvantages to a General Partnership.
Answer: unlimited liability, potential for disagreements, lack of
continuity, difficulty in withdrawing from a partnership
◉ C Corporation.
Answer: a legal business entity that has independent ownership of
assets and liabilities from its shareholders
◉ Requirements of C Corporation.
Answer: board of directors and corporate officers, stockholders as
owner of the company, board meetings, board empowered to
authorize certain actions
◉ Advantages of a C Corporation.
Answer: separate legal entity, limited liability for stockholders,
unlimited life of the business, availability of capital resources,
transfer of ownership though stock
◉ Disadvantages to a C Corporation.
2026 COMPLETE QUESTIONS AND ANSWERS
ALREADY PASSED
◉ Factors in Business Failure.
Answer: poor planning and inadequate management
◉ Entrepreneur.
Answer: a person engaged in strategic activities that involve
initiation and development of a new business
◉ Calculated Risk.
Answer: something that is well thought through where all outcomes
are considered
◉ Rewards of Owning Your Own Business.
Answer: own boss, flexible time, freedom and independence,
personal satisfaction
◉ Challenges of Owning Business.
,Answer: long hours, manage cash flow, payroll, overwhelming
responsibility, finding/keeping employees, taxes, government
regulations
◉ Business Plan.
Answer: a document that outlines business strategies and goals
◉ Key Functions of a Business Plan.
Answer: planning tool, loan or investor document, benchmarking
tool
◉ Element of a Business Plan.
Answer: cover page, executive summary, company summary,
products and services, market analysis, market strategy, financial
plan
◉ What could be a pitfall to a business plan?.
Answer: must portray an accurate picture of business
◉ What are the different types of business structures?.
Answer: sole proprietorship, partnership, c corporation, s
corporation, limited liability company
,◉ Sole Proprietorship.
Answer: a business that has one individual as the owner who is
responsible for 100% of the decisions made on behalf of the
business and owns all of the business assets
◉ Advantages of a Sole Proprietorship.
Answer: minimal legal restrictions, simple ownership form, low
startup cost, sole owner of profits, freedom in decision making
◉ Disadvantages to a Sole Proprietorship.
Answer: unlimited liability, less available capital, possible difficulty
in obtaining long term financing, dissolution of the business in even
of owner death
◉ Partnership.
Answer: a business relationship between two or more persons who
join to carry on a trade or business. each person contributes money,
property, labor, or skill, and each partner expects to share in the
profits and losses of the business.
◉ Two types of partnership.
Answer: general and limited
◉ Advantages of a General Partnership.
, Answer: ease of formation, direct profit rewards, larger management
base than that of a sole proprietorship
◉ Disadvantages to a General Partnership.
Answer: unlimited liability, potential for disagreements, lack of
continuity, difficulty in withdrawing from a partnership
◉ C Corporation.
Answer: a legal business entity that has independent ownership of
assets and liabilities from its shareholders
◉ Requirements of C Corporation.
Answer: board of directors and corporate officers, stockholders as
owner of the company, board meetings, board empowered to
authorize certain actions
◉ Advantages of a C Corporation.
Answer: separate legal entity, limited liability for stockholders,
unlimited life of the business, availability of capital resources,
transfer of ownership though stock
◉ Disadvantages to a C Corporation.
