CSLB LAW TEST EXAMPLES QUESTIONS AND
ANSWERS A+ GRADED. Buy Quality Materials!
fixed costs
Cost that does not change; ex: rent, machinery repair,property taxes, and salary of the
workers
variable costs
Costs that rise or fall depending on the quantity produced; EX: cost of labor, electricity,
heating bills, goods, part time salesman
Sole proprietorship
Business owned and managed by a single individual
General partnership
Partners in a general partnership share equally in both responsibility and liability
Limited partnership
Only one partner is required to be a general partner; only one partner has unlimited
personal liability for the firms actions, the other partner contributes only money
Limited Liability Partnership
All partners are limited partners
Tax return
A form used to file income taxes, you declare your income to the government and figure
out your taxable income
Taxable income
A persons gross income minus exemptions and deductions
Personal exemption
Set amounts that you subtract from your gross income for yourself, spouse, and any
dependents
Deductions
Variable amounts that you can subtract or deduct from your gross income; EX: interest
on mortgage, donations to charity, medical expenses, and state and local tax payments
FUTA
FICA
Taxes that fund social security and Medicare; paid by employees and employers
fiscal policy
use of government spending and revenue collection to influence the economy
fiscal year
A 12-month period, October 1 through Septmeber 30, for planning the federal budget
Qualifier
The individual who qualifies a license by demonstrating the necessary experience and
knowledge for the classification
Qualifying individual
Individual who meets the experience and examination requirements for a license
Qualifying partner
Title of the qualifying individual on a partnership license
RME- responsible managing employee
ANSWERS A+ GRADED. Buy Quality Materials!
fixed costs
Cost that does not change; ex: rent, machinery repair,property taxes, and salary of the
workers
variable costs
Costs that rise or fall depending on the quantity produced; EX: cost of labor, electricity,
heating bills, goods, part time salesman
Sole proprietorship
Business owned and managed by a single individual
General partnership
Partners in a general partnership share equally in both responsibility and liability
Limited partnership
Only one partner is required to be a general partner; only one partner has unlimited
personal liability for the firms actions, the other partner contributes only money
Limited Liability Partnership
All partners are limited partners
Tax return
A form used to file income taxes, you declare your income to the government and figure
out your taxable income
Taxable income
A persons gross income minus exemptions and deductions
Personal exemption
Set amounts that you subtract from your gross income for yourself, spouse, and any
dependents
Deductions
Variable amounts that you can subtract or deduct from your gross income; EX: interest
on mortgage, donations to charity, medical expenses, and state and local tax payments
FUTA
FICA
Taxes that fund social security and Medicare; paid by employees and employers
fiscal policy
use of government spending and revenue collection to influence the economy
fiscal year
A 12-month period, October 1 through Septmeber 30, for planning the federal budget
Qualifier
The individual who qualifies a license by demonstrating the necessary experience and
knowledge for the classification
Qualifying individual
Individual who meets the experience and examination requirements for a license
Qualifying partner
Title of the qualifying individual on a partnership license
RME- responsible managing employee
