NASCLA Business Law and Managment EXAM SC.pdf file:///C:/Users/HP/Desktop/New%20fo/NASCLA%20Business%20
NASCLA BUSINESS LAW AND MANAGEMENT EXAM SC
1. Sole Proprietorship
Answer a business owned and managed by a single individual Simplest form to set up
unlimited Liability
2. Partnerships
Answer Business organizations in which two or more persons share re- sponsibilities, costs,
profits, and losses.
3. C Corporations
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
4. S corporation
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
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,NASCLA Business Law and Managment EXAM SC.pdf file:///C:/Users/HP/Desktop/New%20fo/NASCLA%20Business%20
5. Limited liability company
Answer A business organization in which the business (not the owner) is liable for the
company's debts
6. joint venture
Answer an agreement between two or more companies to share a business project
7. Reserving business Name
Answer Register with secretary of state
8. Purpose of licensing
Answer Protect Health, Safety, and welfare of the public
9. When is a Contractors license Needed?
Answer Excess of $5000
10. cease and desist order
Answer ruling requiring a company to stop an unfair business practice from performing work
without a license
11. Monetary limitations for general and mechanical contractors
Answer determined by the financial net worth of the entity seeking licensure
12. Group Limitations
Answer Divided into groups according to net worth.
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,NASCLA Business Law and Managment EXAM SC.pdf file:///C:/Users/HP/Desktop/New%20fo/NASCLA%20Business%20
13. Reciprocity
Answer South Carolina has a reciprocal agreement with certain states but licensee must still
pass the business and law exam.
14. Property insurance
Answer A type of insurance that covers damage to property, such as a home.
15. liability insurance
Answer insurance that provides protection from claims arising from injuries or damage to other
people or property
16. Business Owners Policy (BOP)
Answer Property and liability Coverage are bundles under business owners policies
17. Automobile Insurance
Answer Provides payments for both liability and physical dam- age to vehicles
18. Burglary and Theft Insurance
Answer Loss or damage by burglary, theft, Larceny, Robbery, Forgery, Fraud, and
vandalism.
19. Key Man Life Insurance
Answer This type of insurance is available as life insurance or disability insurance to protect
continuing sucess of your business.
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NASCLA BUSINESS LAW AND MANAGEMENT EXAM SC
1. Sole Proprietorship
Answer a business owned and managed by a single individual Simplest form to set up
unlimited Liability
2. Partnerships
Answer Business organizations in which two or more persons share re- sponsibilities, costs,
profits, and losses.
3. C Corporations
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
4. S corporation
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
1/
1 of 21 9/10/2024, 8:06
,NASCLA Business Law and Managment EXAM SC.pdf file:///C:/Users/HP/Desktop/New%20fo/NASCLA%20Business%20
5. Limited liability company
Answer A business organization in which the business (not the owner) is liable for the
company's debts
6. joint venture
Answer an agreement between two or more companies to share a business project
7. Reserving business Name
Answer Register with secretary of state
8. Purpose of licensing
Answer Protect Health, Safety, and welfare of the public
9. When is a Contractors license Needed?
Answer Excess of $5000
10. cease and desist order
Answer ruling requiring a company to stop an unfair business practice from performing work
without a license
11. Monetary limitations for general and mechanical contractors
Answer determined by the financial net worth of the entity seeking licensure
12. Group Limitations
Answer Divided into groups according to net worth.
2/
2 of 21 9/10/2024, 8:06
,NASCLA Business Law and Managment EXAM SC.pdf file:///C:/Users/HP/Desktop/New%20fo/NASCLA%20Business%20
13. Reciprocity
Answer South Carolina has a reciprocal agreement with certain states but licensee must still
pass the business and law exam.
14. Property insurance
Answer A type of insurance that covers damage to property, such as a home.
15. liability insurance
Answer insurance that provides protection from claims arising from injuries or damage to other
people or property
16. Business Owners Policy (BOP)
Answer Property and liability Coverage are bundles under business owners policies
17. Automobile Insurance
Answer Provides payments for both liability and physical dam- age to vehicles
18. Burglary and Theft Insurance
Answer Loss or damage by burglary, theft, Larceny, Robbery, Forgery, Fraud, and
vandalism.
19. Key Man Life Insurance
Answer This type of insurance is available as life insurance or disability insurance to protect
continuing sucess of your business.
3/
3 of 21 9/10/2024, 8:06
