ARE 5.0 PCM UPDATED ACTUAL Exam
Questions and CORRECT Answers
CANNON 1 - CORRECT ANSWER - GENERAL OBLIGATIONS: MAINTAIN &
ADVANCE THEIR KNOWLEDGE OF THE ART & SCIENCE OF ARCHITECTURE,
CONTRIBUTE TO ITS GROWTH, EXERCISE LEARNED AND COMPROMISED
PROFESSIONAL JUDGEMENT.
CANNON II - CORRECT ANSWER - OBLIGATIONS TO THE PUBLIC: SERVE THE
PUBLIC INTEREST IN THEIR PROFESSIONAL AND PERSONAL ACTIVITIES
CANNON III - CORRECT ANSWER - OBLIGATIONS TO THE CLIENT: SERVE
CLIENTS COMPETENTLY AND IN A PROFESSIONAL MANNER.
CANNON IV - CORRECT ANSWER - OBLIGATIONS TO THE PROFESSION:
UPHOLD THE INTEGRITY AND DIGNITY OF THE PROFESSION.
CANNON V - CORRECT ANSWER - OBLIGATIONS TO COLLEAGUES: RESPECT
THE RIGHTS AND ACKNOWLEDGE THE PROFESSIONAL ASPIRATIONS AND
CONTRIBUTIONS OF THEIR COLLEAGUES.
CANNON VI - CORRECT ANSWER - OBLIGATIONS TO THE ENVIRONMENT:
PROMOTE SUSTAINABLE DESIGN AND DEVELOPMENT PRINCIPLES
SOLE PROPRIETORSHIP - CORRECT ANSWER - OWNED BY AN INDIVIDUAL.
EASY TO SETUP, TOTAL MGT BY OWNER, POSSIBLE TAX ADVANTAGES.
DISADVANTAGE: OWNER IS PERSONALLY LIABLE FOR COMPANY DEBTS AND
LOSSES
GENERAL PARTNERSHIP - CORRECT ANSWER - 2 OR MORE PEOPLE,
GENERAL PARTNERS, SHARE MGT, RISK, RPFIT. INCOME IS SHARED & REPORTED
ON PERSONAL TAX FORMS. EACH PARTNER IS PERSONALLY LIABLE FOR
BUSINESS DEBTS.
, LIMITED PARTNERSHIP - CORRECT ANSWER - HAS ONE GENERAL PARTNER
& AT LEAST ONE LIMITED PARTNER. GEN. PARTNERS INVEST & MANAGE IT &
ARE FINANCIALLY RESPONSIBLE. LIMITED PARTNERS ARE SILENT INVESTORS,
ONLY LIABLE FOR THEIR INITIAL INVESTMENT.
CORPORATION/ C CORP - CORRECT ANSWER - A LEGAL ENTITY SEPARATE
FROM ITS MEMBERS, REQUIRES ARTICLES OF CORP FROM STATE OFFICE.
MEMBERS ARE ONLY RESPONSIBLE FOR INITAL INVESTMENT.
C CORP - CORRECT ANSWER - STRUCTURE: STOCKHOLDERS, DIRECTORS,
OFFICERS
CORP - CORRECT ANSWER - ADVANTAGE: MEMBERS PERSONAL ASSETS
ARE NOT AT RISK. TAXED AT LOWER RATES BUT ONCE AT THE BUSINESS LEVEL
ON ITS PROFITS AND ONCE FOR ITS SHAREHOLDERS FOR DIVIDENDS
S CORP - CORRECT ANSWER - ALLOCATES INCOME AND LOSSES DIRECTLY
TO SHAREHOLDERS. LIMITED TO SMALL BUSINESSES, LESS THAN 100.
LLC OR LLP - CORRECT ANSWER - CONSIST OF INVESTORS/MEMBERS AND
MANAGERS. MEMBERS HAVE NO PERSONAL LIABILITY ONLY INITIAL
INVESTMENT. NOT A SEPARATE ENTITY TAX WISE SO THE BUSINESS ISN'T
TAXED. PROFITS/LOSSES AND TAXES ARE PASSED ON TO ITS MEMBERS
JOINT VENTURE - CORRECT ANSWER - TEMP ASSOCIATION OF 2 OR MORE
PERSONS/FIRMS FOR THE PURPOSE OF COMPLETING A PROJECT OR GOAL. TYP.
OF LARGE PROJECT TYPES & OUTSOURCING EXPERTISE. DISSOLVES AFTER
COMPLETION.
TEAMING AGREEMENT - CORRECT ANSWER - DEFINES ROLES,
RESPONSIBILITIES, & CONTRACTUAL RELATIONSHIPS. NOT A FORMAL
AGREEMENT.
Questions and CORRECT Answers
CANNON 1 - CORRECT ANSWER - GENERAL OBLIGATIONS: MAINTAIN &
ADVANCE THEIR KNOWLEDGE OF THE ART & SCIENCE OF ARCHITECTURE,
CONTRIBUTE TO ITS GROWTH, EXERCISE LEARNED AND COMPROMISED
PROFESSIONAL JUDGEMENT.
CANNON II - CORRECT ANSWER - OBLIGATIONS TO THE PUBLIC: SERVE THE
PUBLIC INTEREST IN THEIR PROFESSIONAL AND PERSONAL ACTIVITIES
CANNON III - CORRECT ANSWER - OBLIGATIONS TO THE CLIENT: SERVE
CLIENTS COMPETENTLY AND IN A PROFESSIONAL MANNER.
CANNON IV - CORRECT ANSWER - OBLIGATIONS TO THE PROFESSION:
UPHOLD THE INTEGRITY AND DIGNITY OF THE PROFESSION.
CANNON V - CORRECT ANSWER - OBLIGATIONS TO COLLEAGUES: RESPECT
THE RIGHTS AND ACKNOWLEDGE THE PROFESSIONAL ASPIRATIONS AND
CONTRIBUTIONS OF THEIR COLLEAGUES.
CANNON VI - CORRECT ANSWER - OBLIGATIONS TO THE ENVIRONMENT:
PROMOTE SUSTAINABLE DESIGN AND DEVELOPMENT PRINCIPLES
SOLE PROPRIETORSHIP - CORRECT ANSWER - OWNED BY AN INDIVIDUAL.
EASY TO SETUP, TOTAL MGT BY OWNER, POSSIBLE TAX ADVANTAGES.
DISADVANTAGE: OWNER IS PERSONALLY LIABLE FOR COMPANY DEBTS AND
LOSSES
GENERAL PARTNERSHIP - CORRECT ANSWER - 2 OR MORE PEOPLE,
GENERAL PARTNERS, SHARE MGT, RISK, RPFIT. INCOME IS SHARED & REPORTED
ON PERSONAL TAX FORMS. EACH PARTNER IS PERSONALLY LIABLE FOR
BUSINESS DEBTS.
, LIMITED PARTNERSHIP - CORRECT ANSWER - HAS ONE GENERAL PARTNER
& AT LEAST ONE LIMITED PARTNER. GEN. PARTNERS INVEST & MANAGE IT &
ARE FINANCIALLY RESPONSIBLE. LIMITED PARTNERS ARE SILENT INVESTORS,
ONLY LIABLE FOR THEIR INITIAL INVESTMENT.
CORPORATION/ C CORP - CORRECT ANSWER - A LEGAL ENTITY SEPARATE
FROM ITS MEMBERS, REQUIRES ARTICLES OF CORP FROM STATE OFFICE.
MEMBERS ARE ONLY RESPONSIBLE FOR INITAL INVESTMENT.
C CORP - CORRECT ANSWER - STRUCTURE: STOCKHOLDERS, DIRECTORS,
OFFICERS
CORP - CORRECT ANSWER - ADVANTAGE: MEMBERS PERSONAL ASSETS
ARE NOT AT RISK. TAXED AT LOWER RATES BUT ONCE AT THE BUSINESS LEVEL
ON ITS PROFITS AND ONCE FOR ITS SHAREHOLDERS FOR DIVIDENDS
S CORP - CORRECT ANSWER - ALLOCATES INCOME AND LOSSES DIRECTLY
TO SHAREHOLDERS. LIMITED TO SMALL BUSINESSES, LESS THAN 100.
LLC OR LLP - CORRECT ANSWER - CONSIST OF INVESTORS/MEMBERS AND
MANAGERS. MEMBERS HAVE NO PERSONAL LIABILITY ONLY INITIAL
INVESTMENT. NOT A SEPARATE ENTITY TAX WISE SO THE BUSINESS ISN'T
TAXED. PROFITS/LOSSES AND TAXES ARE PASSED ON TO ITS MEMBERS
JOINT VENTURE - CORRECT ANSWER - TEMP ASSOCIATION OF 2 OR MORE
PERSONS/FIRMS FOR THE PURPOSE OF COMPLETING A PROJECT OR GOAL. TYP.
OF LARGE PROJECT TYPES & OUTSOURCING EXPERTISE. DISSOLVES AFTER
COMPLETION.
TEAMING AGREEMENT - CORRECT ANSWER - DEFINES ROLES,
RESPONSIBILITIES, & CONTRACTUAL RELATIONSHIPS. NOT A FORMAL
AGREEMENT.
