NASCLA BUSINESS LAW AND MANAGMENT
EXAM SC STUDY GUIDE COMPLETE EXAM
QUESTIONS AND ANSWERS (VERIFIED)
(2026) UPDATE!!
Sole Proprietorship -CORRECT ANSWERS- a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
Partnerships -CORRECT ANSWERS- Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
C Corporations -CORRECT ANSWERS- 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 -CORRECT ANSWERS- A unique government creation that looks like a corporation but is
taxed like sole proprietorships and partnerships
No more than 100 shareholders
FILING IRS FORM 2553
Limited liability company -CORRECT ANSWERS- A business organization in which the business (not the
owner) is liable for the company's debts
joint venture -CORRECT ANSWERS- an agreement between two or more companies to share a business
project
Reserving business Name -CORRECT ANSWERS- Register with secretary of state
Purpose of licensing -CORRECT ANSWERS- Protect Health, Safety, and welfare of the public
, When is a Contractors license Needed? -CORRECT ANSWERS- Excess of $5000
cease and desist order -CORRECT ANSWERS- ruling requiring a company to stop an unfair business
practice from performing work without a license
Monetaryflimitationsfforfgeneralfandfmechanicalfcontractorsf-CORRECTfANSWERS-
fdeterminedfbyftheffinancialfnetfworthfoffthefentityfseekingflicensure
GroupfLimitationsf-CORRECTfANSWERS-fDividedfintofgroupsfaccordingftofnetfworth.
Reciprocityf-CORRECTfANSWERS-
fSouthfCarolinafhasfafreciprocalfagreementfwithfcertainfstatesfbutflicenseefmustfstillfpassfthefbusinessfandfl
awfexam.
Propertyfinsurancef-CORRECTfANSWERS-
fAftypefoffinsurancefthatfcoversfdamageftofproperty,fsuchfasfafhome.
liabilityfinsurancef-CORRECTfANSWERS-
finsurancefthatfprovidesfprotectionffromfclaimsfarisingffromfinjuriesforfdamageftofotherfpeopleforfproperty
BusinessfOwnersfPolicyf(BOP)f-CORRECTfANSWERS-
fPropertyfandfliabilityfCoveragefarefbundlesfunderfbusinessfownersfpolicies
AutomobilefInsurancef-CORRECTfANSWERS-
fProvidesfpaymentsfforfbothfliabilityfandfphysicalfdamageftofvehicles
BurglaryfandfTheftfInsurancef-CORRECTfANSWERS-
fLossforfdamagefbyfburglary,ftheft,fLarceny,fRobbery,fForgery,fFraud,fandfvandalism.
KeyfManfLifefInsurancef-CORRECTfANSWERS-
fThisftypefoffinsurancefisfavailablefasflifefinsuranceforfdisabilityfinsuranceftofprotectfcontinuingfsucessfoffyo
urfbusiness.
EXAM SC STUDY GUIDE COMPLETE EXAM
QUESTIONS AND ANSWERS (VERIFIED)
(2026) UPDATE!!
Sole Proprietorship -CORRECT ANSWERS- a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
Partnerships -CORRECT ANSWERS- Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
C Corporations -CORRECT ANSWERS- 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 -CORRECT ANSWERS- A unique government creation that looks like a corporation but is
taxed like sole proprietorships and partnerships
No more than 100 shareholders
FILING IRS FORM 2553
Limited liability company -CORRECT ANSWERS- A business organization in which the business (not the
owner) is liable for the company's debts
joint venture -CORRECT ANSWERS- an agreement between two or more companies to share a business
project
Reserving business Name -CORRECT ANSWERS- Register with secretary of state
Purpose of licensing -CORRECT ANSWERS- Protect Health, Safety, and welfare of the public
, When is a Contractors license Needed? -CORRECT ANSWERS- Excess of $5000
cease and desist order -CORRECT ANSWERS- ruling requiring a company to stop an unfair business
practice from performing work without a license
Monetaryflimitationsfforfgeneralfandfmechanicalfcontractorsf-CORRECTfANSWERS-
fdeterminedfbyftheffinancialfnetfworthfoffthefentityfseekingflicensure
GroupfLimitationsf-CORRECTfANSWERS-fDividedfintofgroupsfaccordingftofnetfworth.
Reciprocityf-CORRECTfANSWERS-
fSouthfCarolinafhasfafreciprocalfagreementfwithfcertainfstatesfbutflicenseefmustfstillfpassfthefbusinessfandfl
awfexam.
Propertyfinsurancef-CORRECTfANSWERS-
fAftypefoffinsurancefthatfcoversfdamageftofproperty,fsuchfasfafhome.
liabilityfinsurancef-CORRECTfANSWERS-
finsurancefthatfprovidesfprotectionffromfclaimsfarisingffromfinjuriesforfdamageftofotherfpeopleforfproperty
BusinessfOwnersfPolicyf(BOP)f-CORRECTfANSWERS-
fPropertyfandfliabilityfCoveragefarefbundlesfunderfbusinessfownersfpolicies
AutomobilefInsurancef-CORRECTfANSWERS-
fProvidesfpaymentsfforfbothfliabilityfandfphysicalfdamageftofvehicles
BurglaryfandfTheftfInsurancef-CORRECTfANSWERS-
fLossforfdamagefbyfburglary,ftheft,fLarceny,fRobbery,fForgery,fFraud,fandfvandalism.
KeyfManfLifefInsurancef-CORRECTfANSWERS-
fThisftypefoffinsurancefisfavailablefasflifefinsuranceforfdisabilityfinsuranceftofprotectfcontinuingfsucessfoffyo
urfbusiness.
