NASCLA Exam Questions With Verified
Answers
Key Functions of a business plan - answer1.) Planning tool
2.) Loan or Investor Document
3.) Benchmarking Tool
Elements of a business plan - answer1.) Cover page
2.) Executive Summary
3.) Company Summary
4.) Products and Services
5.) Market Analy...
NASCLA Exam Questions With Verified Answers Key Functions of a business plan - answer✔✔1.) Planning tool 2.) Loan or Investor Document 3.) Benchmarking Tool Elements of a business plan - answer✔✔1.) Cover page 2.) Executive Summary 3.) Company Summary 4.) Products and Services 5.) Market Analysis 6.) Marketing Strategy 7.) Financial Plan CECPMMF Sole proprietorship - answer✔✔you are the sole owner - exposes t o unlimited liability for business debt Disadvantages of a sole proprietorship - answer✔✔-unlimited personal liability -less available capital -possible difficulty obtaining long -term financing -dissolution of the business on the even of the owner's death Key Characteristics of a partnership - answer✔✔Existence -oral agreement or written General Partners own the assets of the company Limited partners have limited liability in the company Advantages of a general partnership - answer✔✔-Ease of formation -Direct profit rewards -Larger management base than sole prop Disadvantages of a General partnership - answer✔✔-Unlimited personal liability of GP -Multiple decision makers -Limited Life of business -Changes of partnership agreement may be difficult -Partnership dissolves in the event of a GP's death C Corp liability - answer✔✔The owners of the corp (stockholders) are not personally liable for the losses of the business Advantages of a c corp - answer✔✔Limited liability for stockholders Disadvantages of a c corp - answer✔✔double taxation (one on corp profits and again on dividends) Requirements for an S corp - answer✔✔- No more than 100 shareholders who are us residents -Filing of IRS form 2553 -Federal income taxes are paid only on income distributed to members as ordinary income LLC - answer✔✔- Like an S corp, Federal income taxes are paid only on income distributed to members as ordinary income Joint Venture (JV) - answer✔✔Special business arrangement that exists when two or more companies join to un dertake a specific project Purpose of licensing - answer✔✔protect the health, safety, and welfare of the public Tennessee Board for Licensing Contractors - answer✔✔mission is to assure that quality and fair construction practices exist in all phases of the industry so as to protect the safety and welfare of consumers and contractors Contractor's License is needed for - answer✔✔- $25,000 or more for any single project defined as construction, bid or contracted directly to the owner -Subcontractors who perfor m $25,000 or more in electrical, mechanical, plumbing, and HVAC projects -Construction management of any kind where the value exceeds $25,000 LLP Limited Licensed Plumber - answer✔✔Individuals performing plumbing work for projects less than $25,000 must be licensed as an LLP LLE Limited Licensed Electricians - answer✔✔Electricians performing electrical work for projects less than $25,000 may be required to obtain an LLE if local licensing is not offered
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