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MHIC License Exam with complete verified solutions
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MHIC License Exam with complete verified solutions
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MHIC License Exam withcomplete verified solutions
2025-2026
Top reasons businesses fail (8 examples, two umbrella reasons) -
answer poor planning + inadequate management (poor sales,
competitive weakness, high operating expenses, difficulty collecting
invoices, inventory problems, too many fixed assets, poor location,
fraud)
What is an entrepreneur? - answer individual engaged in strategic
activities that begin & develop a business, created to build long-
term value and steady cash flow
What are the functions of a business plan (3)? - answer Planning
tool, loan/investor document, benchmarking tool
Components of a business plan (7) - answer Cover page, executive
summary, company summary, products & services, market analysis,
marketing strategy, financial plan
Common business plan pitfalls (4) - answer Not realistic, language
is too complex for investors/others to understand, risks are not
focused on in comparison to opportunities, competition analysis is
poor
Sole Proprietorship Structure Info (5) - answer simplest business
structure (1 owner), no liability protection, low start up cost, taxes
reported as additional income to owner, hard to get financing
,General Partnership Structure Info (6) - answer Pros: Easy to form,
direct profit rewards, larger management base than SP
Cons: no liability protection, more decision makers, changing
partners can be very difficult
C-Corporation Structure Info (9) - answer Pro: separate legal entity
(owner v business), limited liability for shareholders, unlimited
business life, availability for capital financing, transfer of ownership
through stock
Cons: complex and expensive, limitations of activities and decisions
by board and shareholders, extensive regulation and book-keeping
required, double taxation
S-Corporation Structure Info - answer Similar to C-Corp. Domestic
corporation w/ one class of stock. Must have 100 or less
shareholders (citizens), all shareholders must consent to S format,
no double taxation, must file form 2553
Limited Liability Company (LLC) - answer limited disclosure of
owners, limited documentation required, no advanced IRS filing, no
public disclosure of finances, can delegate management to a non-
member. Can be taxed as a sole prop or corp
Joint Venture Info - answer specific business arrangement formed
on a project basis to integrate positive attributes and resources of
both companies
What happens when you have good risk management (3) - answer
lowers business and liability insurance premiums, reduces chances
of being sued, improves chances of prevailing in a lawsuit
, All-Risk Builders Risk Insurance - answer property insurance that
covers property owners and builders for a project under
construction
Covers equipment, materials, machinery, etc
Owners may require contractors to have All-Risk Insurance (must be
requested in writing)
Named Peril Builders Risk Insurance - answer Insurance policy
having narrower coverage and all risk insurance and specify what
peril are covered typically for fire lightning also wind damage
explosion water damage earthquakes terrorism
Inland Marine/Equipment Theft Insurance - answer property
insurance for tools and equipment . covers theft of goods in transit
and project under construction
Equipment Floater Policy - answer type of inland marine insurance
that covers mobile equipment while stored on premises, in transit,
or in temporary job sites
Transportation Floater Policy - answer protects transporter from
damages against freight during transport
Motor Truck Cargo Insurance - answer Protects the transporter in
the event of damaged or loss freight
Commercial General Liability Insurance - answer basic liability
coverage for bodily injury to non-employees, damage/loss to
property, and or personal injury via slander or reputational damage
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