PcM Business Operations Flashcards
(25 cards)
What are the main advantage to sole proprietorship as a business type?
IOa- Ease of setup
- Possible tax advantage (business expenses and losses deducted from gross income of business)
e3Ω
- Owner is personally liable, assets can be seized to pay any judgements
- raising capital and establishing credit is dependent on owner’s personal credit
- difficult to sell business
What is the difference between a general partnership and a limited partnership
In a general partnership, two or more partners share in the management, profits, and risks of the business. In a limited partnership, at least one of the partners is a limited partner, and serves as in investor but have no say in the management of the company and are liable only to the extent of their investment.
What are the three levels of participants in a corporation?
- Stockholders (owners, in proportion to the number of stocks they own)
- Directors (broad policy decisions)
-Officers (day to day management of corporation)
What is the difference between a C Corporation and an S Corporation?
S corp avoids the tax on corporate income, and is limited to domestic companies under 100 shareholders.
What are the benefits to a corporation as a business type?
Shareholders are liable only for the amount of money he or she has invested- personal aspects are not at risk.
Is is easy to raise capital through sale of stock
What is the difference between an LLC/LLP and a partnership?
It is possible for a non member (non investor) to be a manager
what is the difference between an LLC/LLP and a corporation?
An LLC is not a separate entity in the eyes of the federal government and therefore the business is not taxed. Certain states may tax an LLC. An LLC is easier to set up than a corporation
What must be done before a joint venture is formed?
A teaming agreement/memorandum of understanding
Standard of care is the level of skill and diligence that a reasonably prudent architect would exercise ___________
in the same community, in the same time frame, and given the same facts and circumstances
How can an architect avoid raising the standard of care?
- including statements in the contract related to “high standards”
- taking on responsibilities that are not part of the contract
What must a firm obtain from the registration board of its jurisdiction in order to offer services to the public?
certificate of authorization
What is “Standard of care”
A legal concept defined das the level of skill and diligence that a reasonably prudent architect would exercise in the same community, in the same time frame, and given the same facts and circumstances
What is the difference between departmental organization and studio organization?
Departmental organization has architectural staff organized in to specialized departments, performing the same role on each project. Studio organization organizes employees into groups that are each responsible for completing an entire project.
What taxes does an architecture firm have to pay?
- witholding taxes from employees
- federal and state income taxes (for sole proprietors and some partnerships)
- tax on goods purchased from out of state (only required in some states)
- personal property tax (some states)
- city taxes
- property taxes if the firm owns property
what is a noncomplete clause or restrictive covenant
language in an employment contract that limits who an employee may work for after leaving a firm, or limits an employee from setting up a competing business, or passing on confidential information to others
what are the most important factors determining whether a person is an independent contractor and not an employee
- hired for a specific project
- they control where and how they perform their work
- they provide their own equipment
- they receive no benefits other than payment for services
- free to work for other firms at the same time
What are the benefits/challenges of an Employee Stock Ownership Plan (ESOP)?
Benefits:
- Employees feel more involved in firm resulting in increased productivity
- tax advantages
- financing opportunities for firm
Challenges:
- complicated and expensive to set up
- generally only an option for larger firms that is financially stable
What can an employee not be fired for?
- age
- activities outside of work hours (except for moonlighting if against company policy)
- missing work for required military obligations or jury duty
- reporting company violations of health or safety laws
What does the National Labor Relations Act (Wagner Act) allow?
employees can organize into trade unions, and protects union employees from unfair labor practices
What does Employee Eligibility Verification require?
employer must verify the employee’s right to work in the US by maintaining an employee’s I-9 form for at least 3 years and for one year after employment
Who does the Age Discrimination in Employment Act (ADEA) protect
Employees age 40 and over, at a firm larger than 15 people
What are the different methods of public relations?
Press releases, articles about projects in magazines, writing and publishing technical articles, organizing seminars/workshops, winning design awards
