Proprac Exam Questions with Complete Solutions| Verified

Proprac Exam Questions with Complete Solutions| Verified forms of business structures - Answer ️️ -sole proprietorship, partnerships, limited liability companies (LLC), and corporations what is a sole proprietorship - Answer ️️ -business owned and operated by one person who pays personal income tax and profits from the business advantages: simplest form, least expensive, don't pay income tax as an entity disadvantages: owners bears all responsibility/loss/risk, can be hard to attract high quality employees what is a partnership and what are the two types - Answer ️️ -a business owned by two or more people - each contributes money, property, labor/skill advantages: easy to start with limited expenses, more money and resources available disadvantages: unlimited financial liability, fewer perks, limited ability for acquiring capital 2 types: general partnership and it is services from those partners, and limited partnership (only composed of "investors," who sometimes provide $$), partners invest in the firm and focus first on paying their employees what is a limited liability company (LLC) - Answer ️️ -business structure that blends the aspects of sole proprietorships or partners with corporations advantages: simpler to operate than a corporation, few limitations for number of roles, members do not have personal liability for company debt disadvantages: tax regulations are not as clearly defined, annual reports and filing fees required what are corporations - Answer ️️ -businesses that are owned by many investors who buy shares of stock - legal entity formed under the law of one of the states advantages: limited financial liability for stockholders, more perks and fringe benefits available to shareholders disadvantages: numerous and complex regulations and government requirements, subject to more tax requirements what is a joint venture - Answer ️️ -temporary partnership set up for a specific purpose for a short period of time - share in responsibilities and losses, and profits of a particular project/business venture what is the anatomy of a contract - Answer ️️ -agreement, consideration, contractual capacity, legality, reality of asset, and form what are the interior design's scope of services (7 phases) - Answer ️️ --programming: adjacency, analysis and data collection, identifying partic