ARE 5.0 Practice Management questions and answers well illustrated.

ARE 5.0 Practice Management questions and answers well illustrated. Sole Proprietorship - correct answers.The business is owned by an individual General Partnership - correct answers.Two or more people (general partners) share in the management, profits and risk of the business Limited Partnership - correct answers.Has at least one general partner (invests in the business, manages it and are financially 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) C Corporation - correct answers.An association of individuals (stockholders, directors and officers) that exists as a legal entity apart from its members Stockholders - correct answers.Owners of the corporation in proportion to the number of shares they own Directors - correct answers.Have the fiduciary duty to act in the best interest of the stockholders and are responsible for broad policy decisions Officers - correct answers.Carry out the day-to-day management of the corporation S Corporation - correct answers.A corporation that chooses to allocate it's income and losses directly to shareholders in proportion to their holdings. Limited to small business corporations with less than 100 shareholders. Professional Corporation - correct answers.Similar to other corporations except that liability for malpractice is limited to the person responsible for the act. Limited Liability Company (LLC) - correct answers.Business structure that combines the advantages of a partnership or sole proprietorship with the limited liability of a corporation. (Aka LLP Limited Liability Partnership) Joint Venture - correct answers.A temporary association of two or more persons or firms for the purpose of completing a specific project or achieving a specific goal Teaming Agreement - correct answers.Defines the roles, responsibilities and contractual relationships that will be established if the firms are awarded the project and the joint venture is formed. (Aka Memorandum of Understanding) Memorandum of Understanding - correct answers.Defines the roles, responsibilities and contractual relationships that will be established if the firms are awarded the project and the joint venture is formed (Aka Teaming Agreement) Standard of Care - correct answers.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 or similar facts and circumstances Departmental Organization - correct answers.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) Studio Organization - correct answers.Staff is organized in groups called studios. Each studio is responsible for completing an entire project (Vertical Organization or Tall Organization) Outsourcing - correct answers.Contracting with another company to do some of the work needed for a project Support Staff - correct answers.Employees other than the professional staff and senior management Business License - correct answers.Allows the business to practice and usually serves as a basis for taxation Certificate of Authorization (COA) - correct answers.Some states require a firm to obtain this in order to offer services to the public Human Resources Management - correct answers.Involves the entire range of hiring, compensating, managing and terminating employees, along with the legal responsibilities of having employees (personnel management) Formal Employee Contract - correct answers.Spells out the employee's responsibilities, work duties and compensation, as well as the firms benefits, work conditions, termination procedures and policies