CSLB LAW TEST EXAMPLES ACTUAL QUESTIONS
AND ANSWERS 2026/2027 A+ GRADE.
fixed costs - correct answer-
Cost that does not change; ex: rent, machinery repair,property taxes, and salary of the workers
variable costs - correct answer-
Costs that rise or fall depending on the quantity produced; EX: cost of labor, electricity, heating bill
s, goods, part time salesman
Sole proprietorship - correct answer-Business owned and managed by a single individual
General partnership - correct answer-
Partners in a general partnership share equally in both responsibility and liability
Limited partnership - correct answer-
Only one partner is required to be a general partner; only one partner has unlimited personal liabilit
y for the firms actions, the other partner contributes only money
Limited Liability Partnership - correct answer-All partners are limited partners
Tax return - correct answer-
A form used to file income taxes, you declare your income to the government and figure out your t
axable income
Taxable income - correct answer-A persons gross income minus exemptions and deductions
Personal exemption - correct answer-
Set amounts that you subtract from your gross income for yourself, spouse, and any dependents
Deductions - correct answer-
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
AND ANSWERS 2026/2027 A+ GRADE.
fixed costs - correct answer-
Cost that does not change; ex: rent, machinery repair,property taxes, and salary of the workers
variable costs - correct answer-
Costs that rise or fall depending on the quantity produced; EX: cost of labor, electricity, heating bill
s, goods, part time salesman
Sole proprietorship - correct answer-Business owned and managed by a single individual
General partnership - correct answer-
Partners in a general partnership share equally in both responsibility and liability
Limited partnership - correct answer-
Only one partner is required to be a general partner; only one partner has unlimited personal liabilit
y for the firms actions, the other partner contributes only money
Limited Liability Partnership - correct answer-All partners are limited partners
Tax return - correct answer-
A form used to file income taxes, you declare your income to the government and figure out your t
axable income
Taxable income - correct answer-A persons gross income minus exemptions and deductions
Personal exemption - correct answer-
Set amounts that you subtract from your gross income for yourself, spouse, and any dependents
Deductions - correct answer-
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
