ARIZONA CR34 EXAM SCRIPT 2026
COMPREHENSIVE STUDY GUIDE WITH SOLVED
Q&A
◉ which of the following is an advantage of the sole ownership form
of business? Answer: can be sold or altered at will
◉ when uncertain about what type of entity is best for a company,
seek advice from: Answer: legal counselor
◉ which one of the following is the simplest form of business to set
up Answer: sole proprietorship
◉ an entity whose owner is liable for all debts Answer: sole
proprietorship
◉ what is the advantage of being a sole proprietor ? Answer: owner
makes all the decisions
◉ what business type pays the owner as individual income ?
Answer: sole proprietorship
◉ which of the following is not a licensee ? Answer: a sole proprietor
,◉ what happens to a sole proprietorship if the owner dies ? Answer:
it is terminated immediately
◉ which of the following individuals has no managerial decision
making power, and has liability restricted to the amount of
investment ? Answer: limited partners
◉ a general partnership is made up of "A" - 60%, and "B" -40%. the
partnership is committed to a $100,000.00 debt. "A" dies. there is no
partnership account to cover this debt. how will this debt be
handled ? Answer: "B" is liable for the entire $100,000.00
◉ two partners invest $10,000. each into the general partnership.
the company goes out business with $ 30,000.00 in liabilities. how
much is each partner responsible for ? Answer: $30,000.00
◉ which of the following must be filed when registering an Arizona
limited partnership ? Answer: certificate of limited partnership
◉ a business pays taxes on it's profits and the owners pay additional
income taxes on dividends they receive, what type of business is this
? Answer: corporation
,◉ which of the following business entities continue to exist even if
one or more shareholders die ? Answer: C corporation
◉ approved articles of incorporation must be published in a local
newspaper in the county of the place of business for: Answer: 3
consecutive publications
◉ after you have articles of incorporation with the Arizona
Corporation Commission (ACC) how much time do you have to
publish your articles? Answer: 60 days
◉ two people are in business together and each owns 50 percent of
ABC homes, inc. which of the following is required ? Answer: file
articles with the corporation commission
◉ how would an LLC with a single owner be taxed ? Answer: as a
sole proprietorship
◉ if you incorporate in Arizona, which type of form do you use to
incorporate ? Answer: domestic
◉ which type of business organization is taxed like a partnership,
yet offers all the advantages of a corporation? Answer: limited
liability company
, ◉ in a limited partnership, the decisions are made by: Answer: the
general partners
◉ in Arizona it is a common practice to register a trade or business
name and this is known as ? Answer: DBA
◉ registration of a trademark is effective for how many years?
Answer: 10
◉ when reserving a trade name, a corporate name may be reserved
prior to incorporation for how many days? Answer: 120 days
◉ all of the following can change a name on a contractors license
except: Answer: qualifying party
◉ a formal complaint which has been confirmed by an agency
inspector will remain on the contractor's public record for how
many years? Answer: 2
◉ what is business interruption insurance designed to do? Answer:
protect contractors from lost earnings due to delays in construction
because of covered perils
COMPREHENSIVE STUDY GUIDE WITH SOLVED
Q&A
◉ which of the following is an advantage of the sole ownership form
of business? Answer: can be sold or altered at will
◉ when uncertain about what type of entity is best for a company,
seek advice from: Answer: legal counselor
◉ which one of the following is the simplest form of business to set
up Answer: sole proprietorship
◉ an entity whose owner is liable for all debts Answer: sole
proprietorship
◉ what is the advantage of being a sole proprietor ? Answer: owner
makes all the decisions
◉ what business type pays the owner as individual income ?
Answer: sole proprietorship
◉ which of the following is not a licensee ? Answer: a sole proprietor
,◉ what happens to a sole proprietorship if the owner dies ? Answer:
it is terminated immediately
◉ which of the following individuals has no managerial decision
making power, and has liability restricted to the amount of
investment ? Answer: limited partners
◉ a general partnership is made up of "A" - 60%, and "B" -40%. the
partnership is committed to a $100,000.00 debt. "A" dies. there is no
partnership account to cover this debt. how will this debt be
handled ? Answer: "B" is liable for the entire $100,000.00
◉ two partners invest $10,000. each into the general partnership.
the company goes out business with $ 30,000.00 in liabilities. how
much is each partner responsible for ? Answer: $30,000.00
◉ which of the following must be filed when registering an Arizona
limited partnership ? Answer: certificate of limited partnership
◉ a business pays taxes on it's profits and the owners pay additional
income taxes on dividends they receive, what type of business is this
? Answer: corporation
,◉ which of the following business entities continue to exist even if
one or more shareholders die ? Answer: C corporation
◉ approved articles of incorporation must be published in a local
newspaper in the county of the place of business for: Answer: 3
consecutive publications
◉ after you have articles of incorporation with the Arizona
Corporation Commission (ACC) how much time do you have to
publish your articles? Answer: 60 days
◉ two people are in business together and each owns 50 percent of
ABC homes, inc. which of the following is required ? Answer: file
articles with the corporation commission
◉ how would an LLC with a single owner be taxed ? Answer: as a
sole proprietorship
◉ if you incorporate in Arizona, which type of form do you use to
incorporate ? Answer: domestic
◉ which type of business organization is taxed like a partnership,
yet offers all the advantages of a corporation? Answer: limited
liability company
, ◉ in a limited partnership, the decisions are made by: Answer: the
general partners
◉ in Arizona it is a common practice to register a trade or business
name and this is known as ? Answer: DBA
◉ registration of a trademark is effective for how many years?
Answer: 10
◉ when reserving a trade name, a corporate name may be reserved
prior to incorporation for how many days? Answer: 120 days
◉ all of the following can change a name on a contractors license
except: Answer: qualifying party
◉ a formal complaint which has been confirmed by an agency
inspector will remain on the contractor's public record for how
many years? Answer: 2
◉ what is business interruption insurance designed to do? Answer:
protect contractors from lost earnings due to delays in construction
because of covered perils
