ARE 5.0
PRACTICE
MANAGEMENT
Sole Proprietorship - Answers -The business is owned by an individual
General Partnership - Answers -Two or more people (general partners) share in the
management, profits and risk of the business
Limited Partnership - 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 - Answers -An association of individuals (stockholders, directors and
officers) that exists as a legal entity apart from its members
Stockholders - Answers -Owners of the corporation in proportion to the number of
shares they own
Directors - Answers -Have the fiduciary duty to act in the best interest of the
stockholders and are responsible for broad policy decisions
Officers - Answers -Carry out the day-to-day management of the corporation
S Corporation - 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 - Answers -Similar to other corporations except that liability for
malpractice is limited to the person responsible for the act.
Limited Liability Company (LLC) - 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)
Equal Pay Act - Answers -Requires equal pay for employees with the same work duties,
responsibilities and experience
Employee Eligibility Verification - Answers -Requires employers to verify the employee's
right to work in the United States
Wages and Fair Labor Standards Act (FLSA) - Answers -Establishes min wage,
overtime, record keeping and child labor standards in both the private sector and in the
government employment
Occupational Safety and Health Act of 1970 (OSHA) - Answers -Requires employers to
provide a safe work environment
Health Insurance Portability and Accountability Act of 1996 (HIPPA) - Answers -Protects
the privacy of health information
Employee Retirement Income Security Act (ERISA) - Answers -Sets min standards for
pension plans in the private sector for employers who have a pension plan program
Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) - Answers -
Requires employers with 20 or more employees to continue group medical coverage if
employment is terminated, hours are reduced, employment is changed, or in the event
of death, divorce or other significant life events
Civil Rights Act of 1991 - Answers -Prohibits discrimination on the basis of sex, race,
color, religion or national origin
Age Discrimination in Employment Act of 1967 (ADEA) - Answers -Prohibits age
discrimination in employment for for persons age 40 or over
Family and Medical Leave Act (FMLA) - Answers -Requires that companies give an
employee up to 12 weeks of unpaid leave for child, spousal, or parental care
General Ledger Accounting - Answers -Keeping track of money flowing into and out of
the business and is needed for day-to-day operations, banking, taxes and auditing
Project Cost Accounting - Answers -Tracks revenue, expenses and profit by individual
projects
PRACTICE
MANAGEMENT
Sole Proprietorship - Answers -The business is owned by an individual
General Partnership - Answers -Two or more people (general partners) share in the
management, profits and risk of the business
Limited Partnership - 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 - Answers -An association of individuals (stockholders, directors and
officers) that exists as a legal entity apart from its members
Stockholders - Answers -Owners of the corporation in proportion to the number of
shares they own
Directors - Answers -Have the fiduciary duty to act in the best interest of the
stockholders and are responsible for broad policy decisions
Officers - Answers -Carry out the day-to-day management of the corporation
S Corporation - 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 - Answers -Similar to other corporations except that liability for
malpractice is limited to the person responsible for the act.
Limited Liability Company (LLC) - 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)
Equal Pay Act - Answers -Requires equal pay for employees with the same work duties,
responsibilities and experience
Employee Eligibility Verification - Answers -Requires employers to verify the employee's
right to work in the United States
Wages and Fair Labor Standards Act (FLSA) - Answers -Establishes min wage,
overtime, record keeping and child labor standards in both the private sector and in the
government employment
Occupational Safety and Health Act of 1970 (OSHA) - Answers -Requires employers to
provide a safe work environment
Health Insurance Portability and Accountability Act of 1996 (HIPPA) - Answers -Protects
the privacy of health information
Employee Retirement Income Security Act (ERISA) - Answers -Sets min standards for
pension plans in the private sector for employers who have a pension plan program
Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) - Answers -
Requires employers with 20 or more employees to continue group medical coverage if
employment is terminated, hours are reduced, employment is changed, or in the event
of death, divorce or other significant life events
Civil Rights Act of 1991 - Answers -Prohibits discrimination on the basis of sex, race,
color, religion or national origin
Age Discrimination in Employment Act of 1967 (ADEA) - Answers -Prohibits age
discrimination in employment for for persons age 40 or over
Family and Medical Leave Act (FMLA) - Answers -Requires that companies give an
employee up to 12 weeks of unpaid leave for child, spousal, or parental care
General Ledger Accounting - Answers -Keeping track of money flowing into and out of
the business and is needed for day-to-day operations, banking, taxes and auditing
Project Cost Accounting - Answers -Tracks revenue, expenses and profit by individual
projects
