NASCLA Business Law and
Management EXAM SC||Newest
Exam With Questions And Verified
Correct Answers||Graded A+
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
Bid forms
Supplements
Ethics in bidding -CORRECT ANSWER Bid Shopping
Bid Peddling
Bid Rigging
Bid Shopping -CORRECT ANSWER The practice of revealing the sub-bid of one
subcontractor to obtain a lower price from another subcontractor.
Bid Peddling -CORRECT ANSWER approaching the general contractor once you won
the job and try to get the price lower
bid rigging -CORRECT ANSWER Contractors Coordinate their bids to fix the award
outcome of a project
Total Material Unit Cost -CORRECT ANSWER Price Per unit x Number of units Needed
Required Contract Elements -CORRECT ANSWER Acceptance, Consideration,
competent parties, and legal purpose
Management EXAM SC||Newest
Exam With Questions And Verified
Correct Answers||Graded A+
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
Bid forms
Supplements
Ethics in bidding -CORRECT ANSWER Bid Shopping
Bid Peddling
Bid Rigging
Bid Shopping -CORRECT ANSWER The practice of revealing the sub-bid of one
subcontractor to obtain a lower price from another subcontractor.
Bid Peddling -CORRECT ANSWER approaching the general contractor once you won
the job and try to get the price lower
bid rigging -CORRECT ANSWER Contractors Coordinate their bids to fix the award
outcome of a project
Total Material Unit Cost -CORRECT ANSWER Price Per unit x Number of units Needed
Required Contract Elements -CORRECT ANSWER Acceptance, Consideration,
competent parties, and legal purpose
