ARE 5.0 PRACTICE MANAGEMENT
EXAM 2025 QUESTIONS AND
ANSWERS
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
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 1
, 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 goal
Teaming 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)
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 2
EXAM 2025 QUESTIONS AND
ANSWERS
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
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 1
, 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 goal
Teaming 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)
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 2
