NASCLA Business Law and Managment
EXAM SC
Sole Proprietorship - CORRECT ANSWER-a business owned and managed by a
single individual
Simplest form to set up
unlimited Liability
Partnerships - CORRECT ANSWER-Business organizations in which two or
more persons share responsibilities, costs, profits, and losses.
C Corporations - CORRECT 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 - CORRECT 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 - CORRECT ANSWER-A business organization in
which the business (not the owner) is liable for the company's debts
joint venture - CORRECT ANSWER-an agreement between two or more
companies to share a business project
Reserving business Name - CORRECT ANSWER-Register with secretary of
state
Purpose of licensing - CORRECT ANSWER-Protect Health, Safety, and welfare
of the public
When is a Contractors license Needed? - CORRECT ANSWER-Excess of $5000
, cease and desist order - CORRECT ANSWER-ruling requiring a company to
stop an unfair business practice from performing work without a license
Monetary limitations for general and mechanical contractors - CORRECT
ANSWER-determined by the financial net worth of the entity seeking licensure
Group Limitations - CORRECT ANSWER-Divided into groups according to net
worth.
Reciprocity - CORRECT ANSWER-South Carolina has a reciprocal agreement
with certain states but licensee must still pass the business and law exam.
Property insurance - CORRECT ANSWER-A type of insurance that covers
damage to property, such as a home.
liability insurance - CORRECT ANSWER-insurance that provides protection from
claims arising from injuries or damage to other people or property
Business Owners Policy (BOP) - CORRECT ANSWER-Property and liability
Coverage are bundles under business owners policies
Automobile Insurance - CORRECT ANSWER-Provides payments for both liability
and physical damage to vehicles
Burglary and Theft Insurance - CORRECT ANSWER-Loss or damage by
burglary, theft, Larceny, Robbery, Forgery, Fraud, and vandalism.
Key Man Life Insurance - CORRECT ANSWER-This type of insurance is
available as life insurance or disability insurance to protect continuing sucess of
your business.
Coverage Gaps and Overlaps - CORRECT ANSWER-It is important to evaluate
all your insurance coverage. Using one insurer may minimize gaps and overlaps
in coverage.
Bid Documents include - CORRECT ANSWER-An invitation to Bid
Bid instructions
EXAM SC
Sole Proprietorship - CORRECT ANSWER-a business owned and managed by a
single individual
Simplest form to set up
unlimited Liability
Partnerships - CORRECT ANSWER-Business organizations in which two or
more persons share responsibilities, costs, profits, and losses.
C Corporations - CORRECT 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 - CORRECT 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 - CORRECT ANSWER-A business organization in
which the business (not the owner) is liable for the company's debts
joint venture - CORRECT ANSWER-an agreement between two or more
companies to share a business project
Reserving business Name - CORRECT ANSWER-Register with secretary of
state
Purpose of licensing - CORRECT ANSWER-Protect Health, Safety, and welfare
of the public
When is a Contractors license Needed? - CORRECT ANSWER-Excess of $5000
, cease and desist order - CORRECT ANSWER-ruling requiring a company to
stop an unfair business practice from performing work without a license
Monetary limitations for general and mechanical contractors - CORRECT
ANSWER-determined by the financial net worth of the entity seeking licensure
Group Limitations - CORRECT ANSWER-Divided into groups according to net
worth.
Reciprocity - CORRECT ANSWER-South Carolina has a reciprocal agreement
with certain states but licensee must still pass the business and law exam.
Property insurance - CORRECT ANSWER-A type of insurance that covers
damage to property, such as a home.
liability insurance - CORRECT ANSWER-insurance that provides protection from
claims arising from injuries or damage to other people or property
Business Owners Policy (BOP) - CORRECT ANSWER-Property and liability
Coverage are bundles under business owners policies
Automobile Insurance - CORRECT ANSWER-Provides payments for both liability
and physical damage to vehicles
Burglary and Theft Insurance - CORRECT ANSWER-Loss or damage by
burglary, theft, Larceny, Robbery, Forgery, Fraud, and vandalism.
Key Man Life Insurance - CORRECT ANSWER-This type of insurance is
available as life insurance or disability insurance to protect continuing sucess of
your business.
Coverage Gaps and Overlaps - CORRECT ANSWER-It is important to evaluate
all your insurance coverage. Using one insurer may minimize gaps and overlaps
in coverage.
Bid Documents include - CORRECT ANSWER-An invitation to Bid
Bid instructions
