NASCLA Business Law and Managment EXAM SC
NOTES SUMMARY
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.
liability insurance -: insurance that provides protection from claims arising from injuries or damage to
other people or property
Business Owners Policy (BOP) -: Property and liability Coverage are bundles under business owners
policies
Automobile Insurance -: Provides payments for both liability and physical damage to vehicles
Burglary and Theft Insurance -: Loss or damage by burglary, theft, Larceny, Robbery, Forgery, Fraud, and
vandalism.
Key Man Life Insurance -: This type of insurance is available as life insurance or disability insurance to
protect continuing sucess of your business.
Coverage Gaps and Overlaps -: It is important to evaluate all your insurance coverage. Using one insurer
may minimize gaps and overlaps in coverage.
Bid Documents include -: An invitation to Bid
Bid instructions
NOTES SUMMARY
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.
liability insurance -: insurance that provides protection from claims arising from injuries or damage to
other people or property
Business Owners Policy (BOP) -: Property and liability Coverage are bundles under business owners
policies
Automobile Insurance -: Provides payments for both liability and physical damage to vehicles
Burglary and Theft Insurance -: Loss or damage by burglary, theft, Larceny, Robbery, Forgery, Fraud, and
vandalism.
Key Man Life Insurance -: This type of insurance is available as life insurance or disability insurance to
protect continuing sucess of your business.
Coverage Gaps and Overlaps -: It is important to evaluate all your insurance coverage. Using one insurer
may minimize gaps and overlaps in coverage.
Bid Documents include -: An invitation to Bid
Bid instructions
