FLORIDA ELECTRICAL BUSINESS EXAM 7
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ What are the advantages of a sole proprietorship? (Page 1-8)
Answer: - It is easy to create
- There is total control by the owner
- Ownership is freely transferable
- The owner can sell, alter or exchange all or part of the business.
◉ What are the disadvantages of a sole proprietorship? (Page 1-9)
Answer: - The owner has unlimited personal liability
- The business is terminated upon the death of the owner.
- Personal credits, funds, property must be used as security for loans
- Business profits are taxed as ordinary income to the owner
- Finge benefits are not generally tax deductible
◉ What is a general partnership? (1-10 Answer: Each of the
partners are fully and personally liable as co-owners of the business.
◉ What are the advantages of a partnership? (1-10) Answer: - An
increased ability to raise capital
,- Pooling of financial resources
- Pooling of individual talents
- The sharing of ideas and management responsibility
- Minimal administrative costs
◉ What are the disadvantages of a partnership? (1-10) Answer: -
General partners have unlimited personal liability
- A partnership is terminated upon the death of a partner, by
bankruptcy, or withdrawal of a partner
- Transferability of a partnership interest is usually restricted by
partnership agreement
- Fringe benefits are not generally tax deductible
◉ What rules govern a joint venture? (1-11) Answer: - The same
rules that govern partnerships.
- A joint venture is usually limited to a single transaction.
◉ Corporation (1-11) Answer: The corporate form of business is
usually the costliest to organize
◉ S Corporation (S Corp) (Page 1-11) Answer: The S corporation is
not affected by corporate income taxes, thereby eliminating the
double taxation feature
,◉ Control of the Business (1-12) Answer: 51% stock ownership or
control means that you are able to make policy decisions
◉ Fictitious Name Registration (1-14) Answer: - A person may
engage in business under a fictitious name by registering the name
with the Division of Corporations by filling an "Application for
Registration of Fictitious Name."
- Any person who fails to comply with this act commits a
misdemeanor of the second degree
- If a change of ownership occurs, the owner(s) of record must file a
cancellation and registration within 30 days of the change.
- Fictitious names are valid for 5 years and expire on December 31 of
the fifth year.
◉ What is the name of the state form for the Application for
Certificate of Registration (Sales Tax Number)? (1-15) Answer: DR-1
◉ What is the name of the federal form for the Application for
Employer Identification Number? (1-15) Answer: SS-4
◉ A partnership is dissolved by: (1-21) Answer: - Any event that
makes it unlawful for the business of the partnership to be carried
on or for the members to carry it on in the partnership
- The death of any partner
- Bankruptcy of any partner or the partnership
, - A court decree under the Partnership Act
◉ Corporate dissolution and liquidation (1-22) Answer: Voluntary
dissolution: Incorporators of own interest determine to terminate
the corporate existence
Involuntary dissolution: dissolved by the act of the Department of
State or by decree of a circuit court for the county in which the
registered office of the corporation is located.
◉ Permits For Construction: Construction of any structure in or
across any navigable waters of the U.S., or any road, pipeline, convey
or system, or any other structure over the, on, or adjacent to a levee
or similar federally-maintained structure. (1-24) Answer: U.S. Army
Corps of Engineers - Jacksonville District
◉ Form 940 Answer: Employer's Annual Unemployment Tax Return
◉ Form 941 Answer: Employer's Quarterly Federal Tax Return
◉ (State) UCS-1 Answer: Report to Determine Status
◉ (State) USC-6S (1-26) Answer: Unemployment Compensation Tax
Return
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ What are the advantages of a sole proprietorship? (Page 1-8)
Answer: - It is easy to create
- There is total control by the owner
- Ownership is freely transferable
- The owner can sell, alter or exchange all or part of the business.
◉ What are the disadvantages of a sole proprietorship? (Page 1-9)
Answer: - The owner has unlimited personal liability
- The business is terminated upon the death of the owner.
- Personal credits, funds, property must be used as security for loans
- Business profits are taxed as ordinary income to the owner
- Finge benefits are not generally tax deductible
◉ What is a general partnership? (1-10 Answer: Each of the
partners are fully and personally liable as co-owners of the business.
◉ What are the advantages of a partnership? (1-10) Answer: - An
increased ability to raise capital
,- Pooling of financial resources
- Pooling of individual talents
- The sharing of ideas and management responsibility
- Minimal administrative costs
◉ What are the disadvantages of a partnership? (1-10) Answer: -
General partners have unlimited personal liability
- A partnership is terminated upon the death of a partner, by
bankruptcy, or withdrawal of a partner
- Transferability of a partnership interest is usually restricted by
partnership agreement
- Fringe benefits are not generally tax deductible
◉ What rules govern a joint venture? (1-11) Answer: - The same
rules that govern partnerships.
- A joint venture is usually limited to a single transaction.
◉ Corporation (1-11) Answer: The corporate form of business is
usually the costliest to organize
◉ S Corporation (S Corp) (Page 1-11) Answer: The S corporation is
not affected by corporate income taxes, thereby eliminating the
double taxation feature
,◉ Control of the Business (1-12) Answer: 51% stock ownership or
control means that you are able to make policy decisions
◉ Fictitious Name Registration (1-14) Answer: - A person may
engage in business under a fictitious name by registering the name
with the Division of Corporations by filling an "Application for
Registration of Fictitious Name."
- Any person who fails to comply with this act commits a
misdemeanor of the second degree
- If a change of ownership occurs, the owner(s) of record must file a
cancellation and registration within 30 days of the change.
- Fictitious names are valid for 5 years and expire on December 31 of
the fifth year.
◉ What is the name of the state form for the Application for
Certificate of Registration (Sales Tax Number)? (1-15) Answer: DR-1
◉ What is the name of the federal form for the Application for
Employer Identification Number? (1-15) Answer: SS-4
◉ A partnership is dissolved by: (1-21) Answer: - Any event that
makes it unlawful for the business of the partnership to be carried
on or for the members to carry it on in the partnership
- The death of any partner
- Bankruptcy of any partner or the partnership
, - A court decree under the Partnership Act
◉ Corporate dissolution and liquidation (1-22) Answer: Voluntary
dissolution: Incorporators of own interest determine to terminate
the corporate existence
Involuntary dissolution: dissolved by the act of the Department of
State or by decree of a circuit court for the county in which the
registered office of the corporation is located.
◉ Permits For Construction: Construction of any structure in or
across any navigable waters of the U.S., or any road, pipeline, convey
or system, or any other structure over the, on, or adjacent to a levee
or similar federally-maintained structure. (1-24) Answer: U.S. Army
Corps of Engineers - Jacksonville District
◉ Form 940 Answer: Employer's Annual Unemployment Tax Return
◉ Form 941 Answer: Employer's Quarterly Federal Tax Return
◉ (State) UCS-1 Answer: Report to Determine Status
◉ (State) USC-6S (1-26) Answer: Unemployment Compensation Tax
Return
