NASCLA BUSINESS LAW ACTUAL EXAM QUESTIONS
AND ANSWERS SURE A+
✔✔ Sole Proprietorship - ✔✔a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
✔✔Partnerships - ✔✔Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
✔✔C Corporations - ✔✔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 - ✔✔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 - ✔✔A business organization in which the business (not the
owner) is liable for the company's debts
✔✔joint venture - ✔✔an agreement between two or more companies to share a
business project
✔✔Reserving business Name - ✔✔Register with secretary of state
✔✔Purpose of licensing - ✔✔Protect Health, Safety, and welfare of the public
✔✔When is a Contractors license Needed? - ✔✔Excess of $5000
✔✔cease and desist order - ✔✔ruling requiring a company to stop an unfair business
practice from performing work without a license
✔✔Monetary limitations for general and mechanical contractors - ✔✔determined by the
financial net worth of the entity seeking licensure
✔✔Group Limitations - ✔✔Divided into groups according to net worth.
✔✔Reciprocity - ✔✔South Carolina has a reciprocal agreement with certain states but
licensee must still pass the business and law exam.
✔✔Property insurance - ✔✔A type of insurance that covers damage to property, such
as a home.
AND ANSWERS SURE A+
✔✔ Sole Proprietorship - ✔✔a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
✔✔Partnerships - ✔✔Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
✔✔C Corporations - ✔✔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 - ✔✔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 - ✔✔A business organization in which the business (not the
owner) is liable for the company's debts
✔✔joint venture - ✔✔an agreement between two or more companies to share a
business project
✔✔Reserving business Name - ✔✔Register with secretary of state
✔✔Purpose of licensing - ✔✔Protect Health, Safety, and welfare of the public
✔✔When is a Contractors license Needed? - ✔✔Excess of $5000
✔✔cease and desist order - ✔✔ruling requiring a company to stop an unfair business
practice from performing work without a license
✔✔Monetary limitations for general and mechanical contractors - ✔✔determined by the
financial net worth of the entity seeking licensure
✔✔Group Limitations - ✔✔Divided into groups according to net worth.
✔✔Reciprocity - ✔✔South Carolina has a reciprocal agreement with certain states but
licensee must still pass the business and law exam.
✔✔Property insurance - ✔✔A type of insurance that covers damage to property, such
as a home.
