NASCLA BUSINESS LAW AND MANAGEMENT EXAM SC
CONTRACTOR LICENSING BUSINESS COMPLIANCE EXAM
REVIEW 2026/2027 || MULTIPLE QUESTIONS WITH 100%
CORRECT ANSWERS || EXPERT-VERIFIED & GRADED A+ ||
BLUEPRINT FOR GUARANTEED SUCCESS!!!
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
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
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
CONTRACTOR LICENSING BUSINESS COMPLIANCE EXAM
REVIEW 2026/2027 || MULTIPLE QUESTIONS WITH 100%
CORRECT ANSWERS || EXPERT-VERIFIED & GRADED A+ ||
BLUEPRINT FOR GUARANTEED SUCCESS!!!
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
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
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
