ARE 5.0 Practice Management Exam | Verified Exam Questions and
Answers | Latest Updated Study Material 2026
Question:
1. Sole Proprietor-
ship
Answer:
The business is owned by an individual
Question:
2. General Partner- Two or more people (general partners) share in the management, profits and risk
ship
Answer:
of the business
Question:
3. Limited Partner-
ship
Answer:
Has at least one general partner (invests in the business, manages it and are fi-
nancially responsible for it) and at least one limited partner (investor who receives
a portion of the profits but has no say in the management of the company)
Question:
4. C Corporation
Answer:
An association of individuals (stockholders, directors and oflcers) that exists as a
legal entity apart from its members
Question:
5. Stockholders
Answer:
Owners of the corporation in proportion to the number of shares they own
,Question:
6. Directors
Answer:
Have the fiduciary duty to act in the best interest of the stockholders and are
responsible for broad policy decisions
Question:
7. Officers
Answer:
Carry out the day-to-day management of the corporation
Question:
8. S Corporation
Answer:
A corporation that chooses to allocate it's income and losses directly to sharehold-
ers in proportion to their holdings. Limited to small business corporations with
less than 100 shareholders.
Question:
9. Professional Cor- Similar to other corporations except that liability for malpractice is limited to the
poration
Answer:
person responsible for the act.
Question:
10. Limited Liability
Company (LLC)
Answer:
Business structure that combines the advantages of a partnership or sole pro-
prietorship with the limited liability of a corporation. (Aka LLP Limited Liability
Partnership)
Question:
11. Joint Venture
Answer:
A temporary association of two or more persons or firms for the purpose of
, completing a specific project or achieving a specific goal
Question:
12. Teaming Agree-
ment
Answer:
Defines the roles, responsibilities and contractual relationships that will be estab-
lished if the firms are awarded the project and the joint venture is formed. (Aka
Memorandum of Understanding)
Question:
13. Memorandum of Defines the roles, responsibilities and contractual relationships that will be estab-
Understanding
Answer:
lished if the firms are awarded the project and the joint venture is formed (Aka
Teaming Agreement)
Question:
14. Standard of Care The level of skill and diligence that a reasonably prudent architect would exercise
Answer:
in the same community, in the same time frame, and given the same or similar
facts and circumstances
Question:
15. Departmental
Organization
Answer:
Staff is organized into departments, each of which specializes in a different
function. A project moves from one department to another in its route from start
to finish (Horizontal Organization or Flat Organization)
Question:
16. Studio Organiza-
tion
Answer:
Staff is organized in groups called studios. Each studio is responsible for complet-
ing an entire project (Vertical Organization or Tall Organization)
Answers | Latest Updated Study Material 2026
Question:
1. Sole Proprietor-
ship
Answer:
The business is owned by an individual
Question:
2. General Partner- Two or more people (general partners) share in the management, profits and risk
ship
Answer:
of the business
Question:
3. Limited Partner-
ship
Answer:
Has at least one general partner (invests in the business, manages it and are fi-
nancially responsible for it) and at least one limited partner (investor who receives
a portion of the profits but has no say in the management of the company)
Question:
4. C Corporation
Answer:
An association of individuals (stockholders, directors and oflcers) that exists as a
legal entity apart from its members
Question:
5. Stockholders
Answer:
Owners of the corporation in proportion to the number of shares they own
,Question:
6. Directors
Answer:
Have the fiduciary duty to act in the best interest of the stockholders and are
responsible for broad policy decisions
Question:
7. Officers
Answer:
Carry out the day-to-day management of the corporation
Question:
8. S Corporation
Answer:
A corporation that chooses to allocate it's income and losses directly to sharehold-
ers in proportion to their holdings. Limited to small business corporations with
less than 100 shareholders.
Question:
9. Professional Cor- Similar to other corporations except that liability for malpractice is limited to the
poration
Answer:
person responsible for the act.
Question:
10. Limited Liability
Company (LLC)
Answer:
Business structure that combines the advantages of a partnership or sole pro-
prietorship with the limited liability of a corporation. (Aka LLP Limited Liability
Partnership)
Question:
11. Joint Venture
Answer:
A temporary association of two or more persons or firms for the purpose of
, completing a specific project or achieving a specific goal
Question:
12. Teaming Agree-
ment
Answer:
Defines the roles, responsibilities and contractual relationships that will be estab-
lished if the firms are awarded the project and the joint venture is formed. (Aka
Memorandum of Understanding)
Question:
13. Memorandum of Defines the roles, responsibilities and contractual relationships that will be estab-
Understanding
Answer:
lished if the firms are awarded the project and the joint venture is formed (Aka
Teaming Agreement)
Question:
14. Standard of Care The level of skill and diligence that a reasonably prudent architect would exercise
Answer:
in the same community, in the same time frame, and given the same or similar
facts and circumstances
Question:
15. Departmental
Organization
Answer:
Staff is organized into departments, each of which specializes in a different
function. A project moves from one department to another in its route from start
to finish (Horizontal Organization or Flat Organization)
Question:
16. Studio Organiza-
tion
Answer:
Staff is organized in groups called studios. Each studio is responsible for complet-
ing an entire project (Vertical Organization or Tall Organization)
