Ballast - Chp01_Business Operations

Question 1

Sole Proprietorship

Answer 1

Simplest Business Type, owned by an individual.

Question 2

GENERAL PARTNERSHIP

Answer 2

Two or more people (GENERAL PARTNERS), share in the management, profits, and risks of the business.

Question 3

LIMITED PARTNERSHIP

Answer 3

Has at least one General Partner and at least one Limited Partner. As with a General Partnership, the general partners invest in the business, manage it, and are financially responsible for it. The limited partners are investors who receive a portion of the profits, but who have no say in the management of the company and are liable only to the extent of their investment.

Question 4

A CORPORATION (C CORPORATION)

Answer 4

Is an association of individuals that exists as a legal entity apart from its members.

Question 5

S CORPORATION

Answer 5

Does not retain profits and pay out dividends in the usual manner. Instead an S corporation chooses to allocate it’s income and losses directly to shareholders in proportion to their holdings. Shareholders report their shares of the business income and losses on their personal federal tax returns and are assessed tax at their individual rates.

Question 6

PROFESSIONAL CORPORATION

Answer 6

Is for professionals such as architects…This form of business is similar to other corporations except that liability for malpractice is generally limited to the person responsible for the act.

Question 7

LIMITED LIABILITY COMPANY (LLC) and the LIMITED LIABILITY PARTNERSHIP (LLP)

Answer 7

Are similar Business Structures that combine the advantages of a Partnership or Sole Proprietorship with the Limited Liability of a Corporation. Each is formed like a partnership.

Question 8

JOINT VENTURE

Answer 8

Is a temporary association of two or more persons or firms for the purpose of completing a specific project or achieving a specific goal.

Question 9

DEPARTMENTAL ORGANIZATION (HORIZONTAL ORG./FLAT ORG.)

Answer 9

Staff is organized into departments, each of which specializes in a different function. Ex. CA, marketing, design etc.

Question 10

STUDIO ORGANIZATION (Vertical Organization/Tall Organization)

Answer 10

Organized in groups of employees called STUDIOS. Each studio is responsible for completing an entire project, from initial planning to production and construction administration.

Question 11

HUMAN RESOURCE MANAGEMENT, or PERSONNEL MANAGEMENT

Answer 11

Involves hiring, compensating, managing, and terminating employees, along with the legal responsibilities of having employees.

Question 12

NONCOMPETE CLAUSE

Answer 12

May include limits or prohibitions on such matters as who the employee may work for during a specified amount of time after leaving the firm, setting up a competing business in the same geographical area, working for the firms clients, and passing on confidential information to others.

Question 13

EMPLOYMENT AT WILL

Answer 13

There is no written contract and the employee can be terminated at any time without explanation.

Question 14

COMPENSATION

Answer 14

is any kind of payment made to employees for their work.

Question 15

PERFORMANCE EVALUATION

Answer 15

is a formal review performed by a manager to assess each employees performance.

Question 16

INTERN

Answer 16

is someone in the process of satisfying a state registration boards experience requirement prior to or while taking the ARE

Question 17

QUALITY CONTROL CIRCLE

Answer 17

is a small group of employees who meet regularly among themselves and with management representatives to identify and resolve issues that effect their area of work.

Question 18

PUBLIC RELATIONS (PR)

Answer 18

Establishes and communicates the firms presence to various groups of people on many different levels. The goal of PR is to create a positive image of the firm in the minds of targeted audiences.

Question 19

GENERAL LEDGER ACCOUNTING

Answer 19

Keeping track of money flowing into and out of the business is needed for day-to-day operations, banking, taxes, and auditing. This provides firm-wide statements about the overall financial status of the business so that firm owners can make decisions crucial to the firms profitability and survival.

Question 20

PROJECT COST ACCOUNTING

Answer 20

Tracks revenue, expenses, and profit by individual projects.