1
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TN Business and Law Exam Questions and
Answers (100% Correct Answers) Already
Graded A+
Success Factors in Your Business [ Ans: ] organized, consistent
approach
© 2025 Assignment Expert
Factors in Business Failure [ Ans: ] poor planning and inadequate
management
Entrepreneur [ Ans: ] a person engaged in strategic activities
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that involve initiation and development of a new business
Calculated Risk [ Ans: ] something that is well thought through
where all outcomes are considered
Rewards of Owning Your Own Business [ Ans: ] own boss, flexible
time, freedom and independence, personal satisfaction
Challenges of Owning Business [ Ans: ] long hours, manage cash
flow, payroll, overwhelming responsibility, finding/keeping
employees, taxes, government regulations
Business Plan [ Ans: ] a document that outlines business strategies
and goals
Key Functions of a Business Plan [ Ans: ] planning tool, loan or
investor document, benchmarking tool
, 2
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Element of a Business Plan [ Ans: ] cover page, executive
summary, company summary, products and services, market
analysis, market strategy, financial plan
What could be a pitfall to a business plan? [ Ans: ] must portray
an accurate picture of business
What are the different types of business structures? [ Ans: ] sole
proprietorship, partnership, c corporation, s corporation, limited
liability company
© 2025 Assignment Expert
Sole Proprietorship [ Ans: ] 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
Guru01 - Stuvia
Advantages of a Sole Proprietorship [ Ans: ] minimal legal
restrictions, simple ownership form, low startup cost, sole owner of
profits, freedom in decision making
Disadvantages to a Sole Proprietorship [ Ans: ] unlimited liability,
less available capital, possible difficulty in obtaining long term
financing, dissolution of the business in even of owner death
Partnership [ Ans: ] 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 [ Ans: ] general and limited
Advantages of a General Partnership [ Ans: ] ease of formation,
direct profit rewards, larger management base than that of a sole
proprietorship
, 3
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Disadvantages to a General Partnership [ Ans: ] unlimited
liability, potential for disagreements, lack of continuity, difficulty in
withdrawing from a partnership
C Corporation [ Ans: ] a legal business entity that has
independent ownership of assets and liabilities from its
shareholders
Requirements of C Corporation [ Ans: ] board of directors and
corporate officers, stockholders as owner of the company, board
© 2025 Assignment Expert
meetings, board empowered to authorize certain actions
Advantages of a C Corporation [ Ans: ] separate legal entity,
limited liability for stockholders, unlimited life of the business,
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availability of capital resources, transfer of ownership though stock
Disadvantages to a C Corporation [ Ans: ] complex and
expensive organization, limitations on corporations activities and
decisions by the corporate charter, extensive record keeping and
regulation, double taxation
S Corporation [ Ans: ] a legal business entity formed under the
rules of Subchapter S of the Internal Revenue Code. It is taxed like
a partnership by passing items of income, loss, deduction, and
credits through to its shareholders to be included on their separate
returns
Requirements for S Corporation [ Ans: ] one class of stock, no
more than 100 shareholders who are citizens or legal residents of
US, filing of IRS Form 2553
Limited Liability Company (LLC) [ Ans: ] a legal business entity
that has characteristics of both sole proprietorships and
, 4
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corporations. Federal income taxes are paid only on income
distributed to members as ordinary income. Member have
protection from liability for actions taken by the company or by
other members of your company but are not protected from
liability for personal actions.
Advantages of a LLC [ Ans: ] limited disclosure of owners, limited
documentation, no advance IRS filings, no public disclosure of
finances, limited liability for managers and members, ability to
delegate management to non members
© 2025 Assignment Expert
Joint Venture [ Ans: ] generally formed on a project basis in
order to integrate positive attributes and resources of to or more
companies
Guru01 - Stuvia
Purpose of Licensing [ Ans: ] protects the health, safety, and
welfare of the public
Tennessee Board of Licensing Contractors [ Ans: ] regulates
contracting activities through examination, licensure, and
disciplinary
TN Contractor License Requirements [ Ans: ] must have
contractor license for construction projects of $25,000 or more
Licensing Process [ Ans: ] testing, financial statement, reference
letter, corporations and LLC, application, signature and notarize,
submit application and $250 fee, board review, issuance of
license
Risk Management Benefits [ Ans: ] lower business and liability
insurance premiums, reduce chances of being sued, improve
chances of prevailing in a lawsuit
For Expert help and assignment solutions, +254707240657
TN Business and Law Exam Questions and
Answers (100% Correct Answers) Already
Graded A+
Success Factors in Your Business [ Ans: ] organized, consistent
approach
© 2025 Assignment Expert
Factors in Business Failure [ Ans: ] poor planning and inadequate
management
Entrepreneur [ Ans: ] a person engaged in strategic activities
Guru01 - Stuvia
that involve initiation and development of a new business
Calculated Risk [ Ans: ] something that is well thought through
where all outcomes are considered
Rewards of Owning Your Own Business [ Ans: ] own boss, flexible
time, freedom and independence, personal satisfaction
Challenges of Owning Business [ Ans: ] long hours, manage cash
flow, payroll, overwhelming responsibility, finding/keeping
employees, taxes, government regulations
Business Plan [ Ans: ] a document that outlines business strategies
and goals
Key Functions of a Business Plan [ Ans: ] planning tool, loan or
investor document, benchmarking tool
, 2
For Expert help and assignment solutions, +254707240657
Element of a Business Plan [ Ans: ] cover page, executive
summary, company summary, products and services, market
analysis, market strategy, financial plan
What could be a pitfall to a business plan? [ Ans: ] must portray
an accurate picture of business
What are the different types of business structures? [ Ans: ] sole
proprietorship, partnership, c corporation, s corporation, limited
liability company
© 2025 Assignment Expert
Sole Proprietorship [ Ans: ] 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
Guru01 - Stuvia
Advantages of a Sole Proprietorship [ Ans: ] minimal legal
restrictions, simple ownership form, low startup cost, sole owner of
profits, freedom in decision making
Disadvantages to a Sole Proprietorship [ Ans: ] unlimited liability,
less available capital, possible difficulty in obtaining long term
financing, dissolution of the business in even of owner death
Partnership [ Ans: ] 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 [ Ans: ] general and limited
Advantages of a General Partnership [ Ans: ] ease of formation,
direct profit rewards, larger management base than that of a sole
proprietorship
, 3
For Expert help and assignment solutions, +254707240657
Disadvantages to a General Partnership [ Ans: ] unlimited
liability, potential for disagreements, lack of continuity, difficulty in
withdrawing from a partnership
C Corporation [ Ans: ] a legal business entity that has
independent ownership of assets and liabilities from its
shareholders
Requirements of C Corporation [ Ans: ] board of directors and
corporate officers, stockholders as owner of the company, board
© 2025 Assignment Expert
meetings, board empowered to authorize certain actions
Advantages of a C Corporation [ Ans: ] separate legal entity,
limited liability for stockholders, unlimited life of the business,
Guru01 - Stuvia
availability of capital resources, transfer of ownership though stock
Disadvantages to a C Corporation [ Ans: ] complex and
expensive organization, limitations on corporations activities and
decisions by the corporate charter, extensive record keeping and
regulation, double taxation
S Corporation [ Ans: ] a legal business entity formed under the
rules of Subchapter S of the Internal Revenue Code. It is taxed like
a partnership by passing items of income, loss, deduction, and
credits through to its shareholders to be included on their separate
returns
Requirements for S Corporation [ Ans: ] one class of stock, no
more than 100 shareholders who are citizens or legal residents of
US, filing of IRS Form 2553
Limited Liability Company (LLC) [ Ans: ] a legal business entity
that has characteristics of both sole proprietorships and
, 4
For Expert help and assignment solutions, +254707240657
corporations. Federal income taxes are paid only on income
distributed to members as ordinary income. Member have
protection from liability for actions taken by the company or by
other members of your company but are not protected from
liability for personal actions.
Advantages of a LLC [ Ans: ] limited disclosure of owners, limited
documentation, no advance IRS filings, no public disclosure of
finances, limited liability for managers and members, ability to
delegate management to non members
© 2025 Assignment Expert
Joint Venture [ Ans: ] generally formed on a project basis in
order to integrate positive attributes and resources of to or more
companies
Guru01 - Stuvia
Purpose of Licensing [ Ans: ] protects the health, safety, and
welfare of the public
Tennessee Board of Licensing Contractors [ Ans: ] regulates
contracting activities through examination, licensure, and
disciplinary
TN Contractor License Requirements [ Ans: ] must have
contractor license for construction projects of $25,000 or more
Licensing Process [ Ans: ] testing, financial statement, reference
letter, corporations and LLC, application, signature and notarize,
submit application and $250 fee, board review, issuance of
license
Risk Management Benefits [ Ans: ] lower business and liability
insurance premiums, reduce chances of being sued, improve
chances of prevailing in a lawsuit
