CSLB LAW EXAM QUESTIONS TEST EXAMPLES CORRECTLY ANSWERED.

CSLB LAW EXAM QUESTIONS TEST EXAMPLES CORRECTLY ANSWERED. 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 bills, 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 liability 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 taxable 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