NASCLA Business Law and
Managment EXAM SC study
guide COMPLETE EXAM
Questions and Answers
(Verified Answers) (Latest
Update 2026) UPDATE!!
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
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.
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
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Managment EXAM SC study
guide COMPLETE EXAM
Questions and Answers
(Verified Answers) (Latest
Update 2026) UPDATE!!
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
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.
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
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
