CSLB LAW TEST EXAMPLES | Exam Revision Questions and Correct
Answers With 100% Correct Answers | Latest 2025 Update.
fixed costs - ANSWER- Cost that does not change; ex: rent, machinery repair,property taxes,
and salary of the workers
variable costs - ANSWER- Costs that rise or fall depending on the quantity produced; EX: cost
of labor, electricity, heating bills, goods, part time salesman
Sole proprietorship - ANSWER- Business owned and managed by a single individual
General partnership - ANSWER- Partners in a general partnership share equally in both
responsibility and liability
Limited partnership - ANSWER- Only one partner is required to be a general partner; only one
partner has unlimited personal liability for the firms actions, the other partner contributes only
money
Limited Liability Partnership - ANSWER- All partners are limited partners
Tax return - ANSWER- A form used to file income taxes, you declare your income to the
government and figure out your taxable income
Taxable income - ANSWER- A persons gross income minus exemptions and deductions
Personal exemption - ANSWER- Set amounts that you subtract from your gross income for
yourself, spouse, and any dependents
Answers With 100% Correct Answers | Latest 2025 Update.
fixed costs - ANSWER- Cost that does not change; ex: rent, machinery repair,property taxes,
and salary of the workers
variable costs - ANSWER- Costs that rise or fall depending on the quantity produced; EX: cost
of labor, electricity, heating bills, goods, part time salesman
Sole proprietorship - ANSWER- Business owned and managed by a single individual
General partnership - ANSWER- Partners in a general partnership share equally in both
responsibility and liability
Limited partnership - ANSWER- Only one partner is required to be a general partner; only one
partner has unlimited personal liability for the firms actions, the other partner contributes only
money
Limited Liability Partnership - ANSWER- All partners are limited partners
Tax return - ANSWER- A form used to file income taxes, you declare your income to the
government and figure out your taxable income
Taxable income - ANSWER- A persons gross income minus exemptions and deductions
Personal exemption - ANSWER- Set amounts that you subtract from your gross income for
yourself, spouse, and any dependents
