ARE 5.0 Practice Management with all Correct & 100%
Verified Answers |Latest Version |Already Graded A+
The business is owned by an individual ✔Correct Answer-Sole Proprietorship
Two or more people (general partners) share in the management, profits and risk of the
business ✔Correct Answer-General Partnership
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) ✔Correct Answer-Limited Partnership
An association of individuals (stockholders, directors and officers) that exists as a legal entity
apart from its members ✔Correct Answer-C Corporation
Owners of the corporation in proportion to the number of shares they own ✔Correct Answer-
Stockholders
Have the fiduciary duty to act in the best interest of the stockholders and are responsible for
broad policy decisions ✔Correct Answer-Directors
Carry out the day-to-day management of the corporation ✔Correct Answer-Officers
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. ✔Correct Answer-S Corporation
Similar to other corporations except that liability for malpractice is limited to the person
responsible for the act. ✔Correct Answer-Professional Corporation
Business structure that combines the advantages of a partnership or sole proprietorship with
the limited liability of a corporation. (Aka LLP Limited Liability Partnership) ✔Correct Answer-
Limited Liability Company (LLC)
A temporary association of two or more persons or firms for the purpose of completing a
specific project or achieving a specific goal ✔Correct Answer-Joint Venture
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) ✔Correct Answer-Teaming Agreement
, 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)
✔Correct Answer-Memorandum of Understanding
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
✔Correct Answer-Standard of Care
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) ✔Correct Answer-Departmental Organization
Staff is organized in groups called studios. Each studio is responsible for completing an entire
project (Vertical Organization or Tall Organization) ✔Correct Answer-Studio Organization
Contracting with another company to do some of the work needed for a project ✔Correct
Answer-Outsourcing
Employees other than the professional staff and senior management ✔Correct Answer-
Support Staff
Allows the business to practice and usually serves as a basis for taxation ✔Correct Answer-
Business License
Some states require a firm to obtain this in order to offer services to the public ✔Correct
Answer-Certificate of Authorization (COA)
Involves the entire range of hiring, compensating, managing and terminating employees, along
with the legal responsibilities of having employees (personnel management) ✔Correct
Answer-Human Resources Management
Spells out the employee's responsibilities, work duties and compensation, as well as the firms
benefits, work conditions, termination procedures and policies ✔Correct Answer-Formal
Employee Contract
Person hired for a specific project. They control where and how they perform their work and
provide their own supplies and equipment ✔Correct Answer-Independent Contractor
Defines the duties and responsibilities of the person holding a specific job title ✔Correct
Answer-Job Description
A positive statement of the firms commitment to employees, clients and the public at large
✔Correct Answer-Personnel Policy Manuel
Verified Answers |Latest Version |Already Graded A+
The business is owned by an individual ✔Correct Answer-Sole Proprietorship
Two or more people (general partners) share in the management, profits and risk of the
business ✔Correct Answer-General Partnership
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) ✔Correct Answer-Limited Partnership
An association of individuals (stockholders, directors and officers) that exists as a legal entity
apart from its members ✔Correct Answer-C Corporation
Owners of the corporation in proportion to the number of shares they own ✔Correct Answer-
Stockholders
Have the fiduciary duty to act in the best interest of the stockholders and are responsible for
broad policy decisions ✔Correct Answer-Directors
Carry out the day-to-day management of the corporation ✔Correct Answer-Officers
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. ✔Correct Answer-S Corporation
Similar to other corporations except that liability for malpractice is limited to the person
responsible for the act. ✔Correct Answer-Professional Corporation
Business structure that combines the advantages of a partnership or sole proprietorship with
the limited liability of a corporation. (Aka LLP Limited Liability Partnership) ✔Correct Answer-
Limited Liability Company (LLC)
A temporary association of two or more persons or firms for the purpose of completing a
specific project or achieving a specific goal ✔Correct Answer-Joint Venture
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) ✔Correct Answer-Teaming Agreement
, 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)
✔Correct Answer-Memorandum of Understanding
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
✔Correct Answer-Standard of Care
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) ✔Correct Answer-Departmental Organization
Staff is organized in groups called studios. Each studio is responsible for completing an entire
project (Vertical Organization or Tall Organization) ✔Correct Answer-Studio Organization
Contracting with another company to do some of the work needed for a project ✔Correct
Answer-Outsourcing
Employees other than the professional staff and senior management ✔Correct Answer-
Support Staff
Allows the business to practice and usually serves as a basis for taxation ✔Correct Answer-
Business License
Some states require a firm to obtain this in order to offer services to the public ✔Correct
Answer-Certificate of Authorization (COA)
Involves the entire range of hiring, compensating, managing and terminating employees, along
with the legal responsibilities of having employees (personnel management) ✔Correct
Answer-Human Resources Management
Spells out the employee's responsibilities, work duties and compensation, as well as the firms
benefits, work conditions, termination procedures and policies ✔Correct Answer-Formal
Employee Contract
Person hired for a specific project. They control where and how they perform their work and
provide their own supplies and equipment ✔Correct Answer-Independent Contractor
Defines the duties and responsibilities of the person holding a specific job title ✔Correct
Answer-Job Description
A positive statement of the firms commitment to employees, clients and the public at large
✔Correct Answer-Personnel Policy Manuel
