NASCLA Business Law and Management EXAM SC
Test With Answers
Sole Proprietorship - ANS -a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
Partnerships - ANS -Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
C Corporations - ANS -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 - ANS -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 - ANS -A business organization in which the business (not the
owner) is liable for the company's debts
joint venture - ANS -an agreement between two or more companies to share a business
project
Reserving business Name - ANS -Register with secretary of state
1
Page
Purpose of licensing - ANS -Protect Health, Safety, and welfare of the public
, When is a Contractors license Needed? - ANS -Excess of $5000
cease and desist order - ANS -ruling requiring a company to stop an unfair business
practice from performing work without a license
Monetary limitations for general and mechanical contractors - ANS -determined by the
financial net worth of the entity seeking licensure
Group Limitations - ANS -Divided into groups according to net worth.
Reciprocity - ANS -South Carolina has a reciprocal agreement with certain states but
licensee must still pass the business and law exam.
Property insurance - ANS -A type of insurance that covers damage to property, such as a
home.
liability insurance - ANS -insurance that provides protection from claims arising from
injuries or damage to other people or property
Business Owners Policy (BOP) - ANS -Property and liability Coverage are bundles under
business owners policies
Automobile Insurance - ANS -Provides payments for both liability and physical damage to
vehicles
2
Burglary and Theft Insurance - ANS -Loss or damage by burglary, theft, Larceny, Robbery,
Page
Forgery, Fraud, and vandalism.
Test With Answers
Sole Proprietorship - ANS -a business owned and managed by a single individual
Simplest form to set up
unlimited Liability
Partnerships - ANS -Business organizations in which two or more persons share
responsibilities, costs, profits, and losses.
C Corporations - ANS -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 - ANS -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 - ANS -A business organization in which the business (not the
owner) is liable for the company's debts
joint venture - ANS -an agreement between two or more companies to share a business
project
Reserving business Name - ANS -Register with secretary of state
1
Page
Purpose of licensing - ANS -Protect Health, Safety, and welfare of the public
, When is a Contractors license Needed? - ANS -Excess of $5000
cease and desist order - ANS -ruling requiring a company to stop an unfair business
practice from performing work without a license
Monetary limitations for general and mechanical contractors - ANS -determined by the
financial net worth of the entity seeking licensure
Group Limitations - ANS -Divided into groups according to net worth.
Reciprocity - ANS -South Carolina has a reciprocal agreement with certain states but
licensee must still pass the business and law exam.
Property insurance - ANS -A type of insurance that covers damage to property, such as a
home.
liability insurance - ANS -insurance that provides protection from claims arising from
injuries or damage to other people or property
Business Owners Policy (BOP) - ANS -Property and liability Coverage are bundles under
business owners policies
Automobile Insurance - ANS -Provides payments for both liability and physical damage to
vehicles
2
Burglary and Theft Insurance - ANS -Loss or damage by burglary, theft, Larceny, Robbery,
Page
Forgery, Fraud, and vandalism.
