COMPREHENSIVE TEST BANK 2026
SOLVED QUESTIONS WITH FULL
SOLUTION 100% CORRECT
◉ What is the simplest form of ownership to set up?
Answer: Sole Proprietorship
◉ What is the difference in liability between a Sole Proprietorship and
an S Corporation?
Answer: A Sole Proprietorship has Unlimited personal
liability, while an S Corporation generally has no
personal liability of the shareholders.
◉ What are the two parts that a Contractor license consists of?
Answer: The class of the license and the specialty of work
the contractor is allowed to perform
◉ Who benefits from the Contractor Transaction Recovery Fund?
Answer: Homeowners who have suffered a reimbursable
loss from a dishonest or incompetent general
contractor