NASCLA Business Law and Managment
EXAM SC 2025/2026 Exam Questions
and Verified Answers | Already Graded
A+
Sole Proprietorship - 🧠 ANSWER ✔✔a business owned and managed by a
single individual
Simplest form to set up
unlimited Liability
Partnerships - 🧠 ANSWER ✔✔Business organizations in which two or more
persons share responsibilities, costs, profits, and losses.
C Corporations - 🧠 ANSWER ✔✔Corporations that have no restrictions on
who owns their shares or the number of shareholders; they cannot qualify
for subchapter S tax treatment and are subject to direct taxation
S corporation - 🧠 ANSWER ✔✔A unique government creation that looks
like a corporation but is taxed like sole proprietorships and partnerships
No more than 100 shareholders
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,FILING IRS FORM 2553
Limited liability company - 🧠 ANSWER ✔✔A business organization in which
the business (not the owner) is liable for the company's debts
joint venture - 🧠 ANSWER ✔✔an agreement between two or more
companies to share a business project
Reserving business Name - 🧠 ANSWER ✔✔Register with secretary of state
Purpose of licensing - 🧠 ANSWER ✔✔Protect Health, Safety, and welfare
of the public
When is a Contractors license Needed? - 🧠 ANSWER ✔✔Excess of $5000
cease and desist order - 🧠 ANSWER ✔✔ruling requiring a company to stop
an unfair business practice from performing work without a license
Monetary limitations for general and mechanical contractors - 🧠 ANSWER
✔✔determined by the financial net worth of the entity seeking licensure
Group Limitations - 🧠 ANSWER ✔✔Divided into groups according to net
worth.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Reciprocity - 🧠 ANSWER ✔✔South Carolina has a reciprocal agreement
with certain states but licensee must still pass the business and law exam.
Property insurance - 🧠 ANSWER ✔✔A type of insurance that covers
damage to property, such as a home.
liability insurance - 🧠 ANSWER ✔✔insurance that provides protection from
claims arising from injuries or damage to other people or property
Business Owners Policy (BOP) - 🧠 ANSWER ✔✔Property and liability
Coverage are bundles under business owners policies
Automobile Insurance - 🧠 ANSWER ✔✔Provides payments for both liability
and physical damage to vehicles
Burglary and Theft Insurance - 🧠 ANSWER ✔✔Loss or damage by
burglary, theft, Larceny, Robbery, Forgery, Fraud, and vandalism.
Key Man Life Insurance - 🧠 ANSWER ✔✔This type of insurance is
available as life insurance or disability insurance to protect continuing
sucess of your business.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
EXAM SC 2025/2026 Exam Questions
and Verified Answers | Already Graded
A+
Sole Proprietorship - 🧠 ANSWER ✔✔a business owned and managed by a
single individual
Simplest form to set up
unlimited Liability
Partnerships - 🧠 ANSWER ✔✔Business organizations in which two or more
persons share responsibilities, costs, profits, and losses.
C Corporations - 🧠 ANSWER ✔✔Corporations that have no restrictions on
who owns their shares or the number of shareholders; they cannot qualify
for subchapter S tax treatment and are subject to direct taxation
S corporation - 🧠 ANSWER ✔✔A unique government creation that looks
like a corporation but is taxed like sole proprietorships and partnerships
No more than 100 shareholders
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,FILING IRS FORM 2553
Limited liability company - 🧠 ANSWER ✔✔A business organization in which
the business (not the owner) is liable for the company's debts
joint venture - 🧠 ANSWER ✔✔an agreement between two or more
companies to share a business project
Reserving business Name - 🧠 ANSWER ✔✔Register with secretary of state
Purpose of licensing - 🧠 ANSWER ✔✔Protect Health, Safety, and welfare
of the public
When is a Contractors license Needed? - 🧠 ANSWER ✔✔Excess of $5000
cease and desist order - 🧠 ANSWER ✔✔ruling requiring a company to stop
an unfair business practice from performing work without a license
Monetary limitations for general and mechanical contractors - 🧠 ANSWER
✔✔determined by the financial net worth of the entity seeking licensure
Group Limitations - 🧠 ANSWER ✔✔Divided into groups according to net
worth.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Reciprocity - 🧠 ANSWER ✔✔South Carolina has a reciprocal agreement
with certain states but licensee must still pass the business and law exam.
Property insurance - 🧠 ANSWER ✔✔A type of insurance that covers
damage to property, such as a home.
liability insurance - 🧠 ANSWER ✔✔insurance that provides protection from
claims arising from injuries or damage to other people or property
Business Owners Policy (BOP) - 🧠 ANSWER ✔✔Property and liability
Coverage are bundles under business owners policies
Automobile Insurance - 🧠 ANSWER ✔✔Provides payments for both liability
and physical damage to vehicles
Burglary and Theft Insurance - 🧠 ANSWER ✔✔Loss or damage by
burglary, theft, Larceny, Robbery, Forgery, Fraud, and vandalism.
Key Man Life Insurance - 🧠 ANSWER ✔✔This type of insurance is
available as life insurance or disability insurance to protect continuing
sucess of your business.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
