ARE 5.0 Practice Management Questions And Answers Already Graded A+

Sole Proprietorship - Answer-The business is owned by an individual General Partnership - Answer-Two or more people (general partners) share in the management, profits and risk of the business Limited Partnership - Answer-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 - Answer-An association of individuals (stockholders, directors and officers) that exists as a legal entity apart from its members Stockholders - Answer-Owners of the corporation in proportion to the number of shares they own Directors - Answer-Have the fiduciary duty to act in the best interest of the stockholders and are responsible for broad policy decisions Officers - Answer-Carry out the day-to-day management of the corporation S Corporation - Answer-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 - Answer-Similar to other corporations except that liability for malpractice is limited to the person responsible for the act. Limited Liability Company (LLC) - Answer-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 - Answer-A temporary association of two or more persons or firms for the purpose of completing a specific project or achieving a specific goalTeaming Agreement - Answer-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 - Answer-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 - Answer-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 - 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) Studio Organization - Answer-Staff is organized in groups called studios. Each studio is responsible for completing an entire project (Vertical Organization or Tall Organization) Outsourcing - Answer-Contracting with another company to do some of the work needed for a project Support Staff - Answer-Employees other than the professional staff and senior management Business License - Answer-Allows the business to practice and usually serves as a basis for taxation