Module 4 - AE Prep Flashcards
For sole practitioners what is the least expensive and most common firm structure?
Sole proprietor.
A business owned and run by one individual with no legal distinction between the owner and business. The least expensive type of set up and most common for sole practitioner’s
What are the two types of corporations an architect can inform?
S corporation.
C corporation
What is a joint venture?
Business agreement in which parties agree to work together for a finite time
Name two ways to terminate a proprietorship
Death of proprietor.
Retirement of proprietor
What are the four components of evidence-based design
Gather qualitative and quantitative intelligence.
Map strategic, cultural and research goals.
Hypothesize outcomes, innovate, and implement Translational design.
Measure and share outcomes
What are the differences between the two main types of corporations available as a business structure for architects?
S corporations allow income and expenses to still flow through the individual business owner.
C corporation separates the individual from the corporation
Which type of firm structure is the most complicated to establish, maintain, and has its own federal tax number?
Corporation which is a separate taxable entity
What are the characteristics of an S Corp.?
This is the most common structure for architects.
S Corporation is owned by private shareholders who are relatively engaged in running the practice.
Some of the shareholders also service directors or officers, who handled the legal filing requirements for the corporation.
Profits are passed on to the stakeholders, you have to file and pay taxes on that money.
The personal assets of shareholders cannot be used to satisfy business debts but the architect can still remain professionally liable
What are the characteristics of an LLC?
Provides the liability protections of a corporation with the tax advantages of a partnership.
Members on the LLC.
Managers are elected by the members.
Some states prevent architects from forming as an LLC.
Classified as a corporate partnership for federal tax purposes
What is evidence-based design?
The process of basing decisions about the built environment on credible research to achieve the best possible outcomes
Studies in evidence-based design in hospitals has shown what advantages?
Can lower the incidence of nosocomial infections, medical errors patient falls, and staff injuries.
Reduce the stress of facility users, improve safety and productivity, reduce resource waste, and enhance sustainability.
Project documents consist of?
Project manual.
Project drawings
Responsibility of construction means, methods, techniques, sequences, procedures, and site safety are the responsibility of the?
Contractor
What are for specialty business Enterprises?
MBE: minority-owned business enterprise, or at least 51% of the firm is owned by a minority.
WBE: woman-owned business enterprise or at least 51% of the firm is owned by a female.
DBE: disadvantaged business enterprise at least 51% of the firm is owned by a veteran, disabled veteran, or other disadvantaged groups.
SBE: small business enterprise, or the size of the company meets the requirements set by the small business administration (SBA)
In school design, what are the ways to improve teaching and learning, as well as a productivity of the space and client satisfaction?
Daylight. Operable windows
Six considerations when choosing a legal structure for your firm:
Firm size (employees).
Number of partners.
State licensing board requirements.
Amount of potential liability.
Number of offices.
Best way to reduce taxes.
LLP
Limited liability partnership
LLC
Limited liability company
RFP
Request for proposal
With the architect is being asked to provide a written narrative, what are they responding to?
RFP. Request for proposal
In a partnership, who has potential for liability for professional errors and omissions?
Each partner has potential full liability for professional errors and omissions
In a partnership, does it pay federal income tax on profits?
No, the partnership files a separate federal tax return (call in information return) but does not pay federal income tax on profits
Name the different types of firm structures
Sole proprietor.
Partnership.
Corporation.
Joint venture.
Limited liability company’s
This type of frame structure is the simplest form of practice
Sole proprietor
What is a partnership firm structure?
Partners agree to share in job duties and profits and losses of a business
In sole proprietor firm structure are they required to file state documents and federal tax forms?
No, they are not required to file state documents and federal tax forms to conduct a practice, this is included in the individual’s tax returns
Most states have an acted this act which establishes certain legal requirements for partners
Uniform partnership act
When can a general business corporation be formed?
May be formed for any legal purposes and are subject to state requirements
Why are professional corporations establish?
Established specifically to provide professional service and subject to restrictions in the professional corporation statute
What is the usual method for a compensating department shareholders in a corporation?
Buy/sell agreement
In a subchapter S Corp., shareholders are taxed on what?
They are taxed on their pro rata share of the corporations and come
Owners in an LLC or called this and have limited personal liability
Members
Why are LLCs classified as partnerships?
Classified as a partnership for federal tax purposes
Students who are fortunate to be in a school classroom with large windows and skylights perform better on test in those and rims with very little natural light by this percentage
Between 7% an 18% better, according to research conducted more than a decade ago in the daylight in school study, administered by the Pacific gas and electric company
Evidence evidence-based design accreditation and certification (EDAC) program was introduced in 2009 by the center for health design to provide what?
Internationally recognized accreditation and promote the use of EBD and healthcare building projects, making EBD an excepted in credible approach to improving health care outcomes
The evidence-based design accreditation and certification (EDAC) identifies what?
The EDAC identifies those experienced in EBD and teachers about the research process: identifying, hypothesizing, implementing, gathering and reporting data associated with a healthcare project
Evidence-based design (EBD) was popularized by?
The seminal study by Roger Ulrich (1984) that showed the impact of a window view on patient recovery
A white paper from the center for health design identifies 10 strategies to aid EBD decision making and how many years for a lifecycle perspective
Use a lifecycle perspective (30 to 50 years) from planning to product, Exploring the lifecycle return on investment of design strategies for safety and workforce outcomes
The white paper from the Center for Health design identifies 10 strategies to aid EDD decision making the use of strategic partnerships is to create?
New products with hospital staff expertise and influence
Prevention costs
The cost to train and educate staff on the right way to do things
Appraisal costs
The cost of Properly reviewing and checking drawings before releasing them to the building department, contractor, or owner
The architects should assist (not responsible for legal advice) the owner in the development in preparation of?
Bidding and procurement information. The form of agreement between the owner and contractor. The conditions of the contract for construction.
The owner is responsible to furnish
Necessary legal, accounting, and insurance services to accomplish the project.
What are account codes used for?
To keep track of time, reimbursable expense, phone, fax
Routine communication should use…
Transmittals that include contact info on all correspondence, date everything, take notes, standard fax cover letter
Internal failure costs
The cost associated with project or process failures, such as an incomplete or uncoordinated consultant drawing
For proper communication, meeting should always include this?
An agenda
External failure costs
The cost that would come from a failure after delivery of the drawings or services to the owner
