Module 4 - AE Prep Flashcards Preview

ARE 5.0 - PCM Exam > Module 4 - AE Prep > Flashcards

Flashcards in Module 4 - AE Prep Deck (48)
Loading flashcards...
1

For sole practitioners what is the least expensive and most common firm structure?

Sole proprietor.

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

2

What are the two types of corporations an architect can inform?

S corporation.

C corporation

3

What is a joint venture?

Business agreement in which parties agree to work together for a finite time

4

Name two ways to terminate a proprietorship

Death of proprietor.

Retirement of proprietor

5

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

6

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

7

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

8

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

9

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

10

What is evidence-based design?

The process of basing decisions about the built environment on credible research to achieve the best possible outcomes

11

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.

12

Project documents consist of?

Project manual.

Project drawings

13

Responsibility of construction means, methods, techniques, sequences, procedures, and site safety are the responsibility of the?

Contractor

14

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)

15

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

16

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.

17

LLP

Limited liability partnership

18

LLC

Limited liability company

19

RFP

Request for proposal

20

With the architect is being asked to provide a written narrative, what are they responding to?

RFP. Request for proposal

21

In a partnership, who has potential for liability for professional errors and omissions?

Each partner has potential full liability for professional errors and omissions

22

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

23

Name the different types of firm structures

Sole proprietor.

Partnership.

Corporation.

Joint venture.

Limited liability company’s

24

This type of frame structure is the simplest form of practice

Sole proprietor

25

What is a partnership firm structure?

Partners agree to share in job duties and profits and losses of a business

26

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

27

Most states have an acted this act which establishes certain legal requirements for partners

Uniform partnership act

28

When can a general business corporation be formed?

May be formed for any legal purposes and are subject to state requirements

29

Why are professional corporations establish?

Established specifically to provide professional service and subject to restrictions in the professional corporation statute

30

What is the usual method for a compensating department shareholders in a corporation?

Buy/sell agreement