Flashcards in Module 4 - AE Prep Deck (48)
For sole practitioners what is the least expensive and most common firm structure?
A business owned and run by one individual with no legal distinction between the owner and business. The least expensive type of set up and most common for sole practitioner’s
What are the two types of corporations an architect can inform?
What is a joint venture?
Business agreement in which parties agree to work together for a finite time
Name two ways to terminate a proprietorship
Death of proprietor.
Retirement of proprietor
What are the four components of evidence-based design
Gather qualitative and quantitative intelligence.
Map strategic, cultural and research goals.
Hypothesize outcomes, innovate, and implement Translational design.
Measure and share outcomes
What are the differences between the two main types of corporations available as a business structure for architects?
S corporations allow income and expenses to still flow through the individual business owner.
C corporation separates the individual from the corporation
Which type of firm structure is the most complicated to establish, maintain, and has its own federal tax number?
Corporation which is a separate taxable entity
What are the characteristics of an S Corp.?
This is the most common structure for architects.
S Corporation is owned by private shareholders who are relatively engaged in running the practice.
Some of the shareholders also service directors or officers, who handled the legal filing requirements for the corporation.
Profits are passed on to the stakeholders, you have to file and pay taxes on that money.
The personal assets of shareholders cannot be used to satisfy business debts but the architect can still remain professionally liable
What are the characteristics of an LLC?
Provides the liability protections of a corporation with the tax advantages of a partnership.
Members on the LLC.
Managers are elected by the members.
Some states prevent architects from forming as an LLC.
Classified as a corporate partnership for federal tax purposes
What is evidence-based design?
The process of basing decisions about the built environment on credible research to achieve the best possible outcomes
Studies in evidence-based design in hospitals has shown what advantages?
Can lower the incidence of nosocomial infections, medical errors patient falls, and staff injuries.
Reduce the stress of facility users, improve safety and productivity, reduce resource waste, and enhance sustainability.
Project documents consist of?
Responsibility of construction means, methods, techniques, sequences, procedures, and site safety are the responsibility of the?
What are for specialty business Enterprises?
MBE: minority-owned business enterprise, or at least 51% of the firm is owned by a minority.
WBE: woman-owned business enterprise or at least 51% of the firm is owned by a female.
DBE: disadvantaged business enterprise at least 51% of the firm is owned by a veteran, disabled veteran, or other disadvantaged groups.
SBE: small business enterprise, or the size of the company meets the requirements set by the small business administration (SBA)
In school design, what are the ways to improve teaching and learning, as well as a productivity of the space and client satisfaction?
Daylight. Operable windows
Six considerations when choosing a legal structure for your firm:
Firm size (employees).
Number of partners.
State licensing board requirements.
Amount of potential liability.
Number of offices.
Best way to reduce taxes.
Limited liability partnership
Limited liability company
Request for proposal
With the architect is being asked to provide a written narrative, what are they responding to?
RFP. Request for proposal
In a partnership, who has potential for liability for professional errors and omissions?
Each partner has potential full liability for professional errors and omissions
In a partnership, does it pay federal income tax on profits?
No, the partnership files a separate federal tax return (call in information return) but does not pay federal income tax on profits
Name the different types of firm structures
Limited liability company’s
This type of frame structure is the simplest form of practice
What is a partnership firm structure?
Partners agree to share in job duties and profits and losses of a business
In sole proprietor firm structure are they required to file state documents and federal tax forms?
No, they are not required to file state documents and federal tax forms to conduct a practice, this is included in the individual’s tax returns
Most states have an acted this act which establishes certain legal requirements for partners
Uniform partnership act
When can a general business corporation be formed?
May be formed for any legal purposes and are subject to state requirements
Why are professional corporations establish?
Established specifically to provide professional service and subject to restrictions in the professional corporation statute