Proprac Exam Questions with Complete Solutions| Verified

Proprac Exam Questions with Complete Solutions| Verified forms of business structures - Answer ️️ -sole proprietorship, partnerships, limited liability companies (LLC), and corporations what is a sole proprietorship - Answer ️️ -business owned and operated by one person who pays personal income tax and profits from the business advantages: simplest form, least expensive, don't pay income tax as an entity disadvantages: owners bears all responsibility/loss/risk, can be hard to attract high quality employees what is a partnership and what are the two types - Answer ️️ -a business owned by two or more people - each contributes money, property, labor/skill advantages: easy to start with limited expenses, more money and resources available disadvantages: unlimited financial liability, fewer perks, limited ability for acquiring capital 2 types: general partnership and it is services from those partners, and limited partnership (only composed of "investors," who sometimes provide $$), partners invest in the firm and focus first on paying their employees what is a limited liability company (LLC) - Answer ️️ -business structure that blends the aspects of sole proprietorships or partners with corporations advantages: simpler to operate than a corporation, few limitations for number of roles, members do not have personal liability for company debt disadvantages: tax regulations are not as clearly defined, annual reports and filing fees required what are corporations - Answer ️️ -businesses that are owned by many investors who buy shares of stock - legal entity formed under the law of one of the states advantages: limited financial liability for stockholders, more perks and fringe benefits available to shareholders disadvantages: numerous and complex regulations and government requirements, subject to more tax requirements what is a joint venture - Answer ️️ -temporary partnership set up for a specific purpose for a short period of time - share in responsibilities and losses, and profits of a particular project/business venture what is the anatomy of a contract - Answer ️️ -agreement, consideration, contractual capacity, legality, reality of asset, and form what are the interior design's scope of services (7 phases) - Answer ️️ --programming: adjacency, analysis and data collection, identifying participants -schematic design/space planning: designer identifies department adjacencies, area allocations, block diagrams -design development: scale/form, material/color, updated budget, detailed documents to establish appearance of the space -furniture selection: select finishes and furniture -condocs: rcp's, construction plans, finish plans, details -bidding or negotiating phases: designer's assist in obtaining bids from General Contractors for construction -construction admin services: ID provides services and represents client in payment, furniture install, etc. what are acts of negligence - Answer ️️ -things that would be considered an inappropriate design choice that a qualified ID would know not to do -example: not making a commercial door ADA, not making a closet deep enough what are reimbursable expenses - Answer ️️ -things that the client should anticipate to pay for on top of the design service -examples: copies of reports, gas/travel to job site standard terms and conditions for a contract - Answer ️️ -scope of services, client responsibilities, changes/modifications, services by others ("ID shall have no responsibility for acts of building architect"), use of documents, dispute resolution, and miscellaneous provisions what is a contract - Answer ️️ -promise/agreement between two or more parties to perform or not perform some act -must have a form, can be formal contract or letter of agreement -must include language that addresses specific criteria to the intentions/actions of the party what are the two types of contractual claims - Answer ️️ -contractual liability = measured in terms of assumed/due care in performance of designer's contractual obligations malpractice/professional negligence = clients allege that ID's committed professional misconduct what is a patent (for contracts) - Answer ️️ -a form of a copyright law that offers considerably more protection, directed at physical, scientific, and technological terms what is copyright (for contracts) - Answer ️️ -copyright law for artistic/intellectual works, and a right granted by the author what are the two basic types of construction development phases - Answer ️️ -1. design, bid, build: traditional method where owner contracts separately with designer/arc