NASCLA Contractors Guide 9th Edition Exam Questions and Answers (Solved Papers) Sole Proprietorship - Correct Answers ✅-a business owned and managed by a single individual.-business and personal records must be separated.
-Taxes: net income from business is reported as ordinary
income.A Sole Proprietorship is ____ upon the owners death. - Correct Answers ✅terminated Advantage of a Sole Proprietorship - Correct Answers ✅- Minimal legal restrictions -Simple ownership form -Low startup cost -Sole ownership of profits -Freedom in decision-making process Disadvantages of a Sole Proprietorship - Correct Answers ✅-Unlimited personal liability -Less available capital -Possible difficulty in obtaining capital -Dissolution of the business in the event of the owners death. 1 / 2
NASCLA Contractors Guide 9th Edition Exam Questions and Answers (Solved Papers) Partnership - Correct Answers ✅A business in which two or more persons combine their assets and skills.
-Taxes: business, income, and sales tax are the responsibility
are the responsibility of every owner.Advantages of a General Partnership - Correct Answers ✅- Ease of formation -Direct profit rewards -Larger management base than of a sole proprietorship.Disadvantages of a General Partnership - Correct Answers ✅-unlimited personal liability of general partners -multiple decision makers -limited life of the business -changes of partners or partnership agreement may be difficult -partnership dissolves in the event of the death of a general partner
True or False:
NC based partnerships must submit domestic forms for registration. - Correct Answers ✅True
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