Practice Management Flashcards
Sole proprietorship
Business owned by an individual. Tax advantages bc expenses classes can be deducted from gross income of business. Owner personally liable for losses.
General partnership
Two or more general partners share in management, profits, and risks. Each partner personally liable for business debts a liabilities.
Limited partnership
At least are general partner tat least me limited partner. General partner are financially responsible. Limited partners receive a share of profits, but have no say in management and are liable only to the extent of their investment.
Corporation
Association of individuals that exists as a legal entity apart Fran its members. Shareholders are owners in proportion to investment a elect directors. Directors are responsible for broad policy decisions and elect officers. Officers carry out day-to-day management. Financially t legally separate from shareholders, a generally taxed a lower rates.
S Corporation
Does not retain profits and pay ay out dividends in usual manner.allocates income a losses directly to shore holders sir proportion to their holdings. This avoids tax on corporate income.
Limited liability Companies
Formed like a partnership with members (investers) and managers. A non-member can be a manager. Liability is limited to a member’s investment. Not considered a separate entity, so an I lc is not taxed.
Joint ventures
Temporary association of two or more persons Ar firms for the purpose of completing a specific project or ac hewing a specific goal. Treated like a partnership
Departmental organization
Also horizontal or flat organization.staff organized into departments, each of which specializes in a different function. Every department works on every project as needed.
Studio organization
Also vertical or tall. Organized around studios. Each studio is responsible for completing or entire project.
Employment at Will
No written contract and the employee can be terminated at any time without explanation.employee can also quit any time without giving a reason.
3 areas to determine employee status
- Behavioral control
- Financial control
- Relationship between worker and employer
Quality control Circle
Small group of employed who meet regularly and with management to identify and resolve issues
Study groups
Work an special projects and submit to principles for study and implementation.
National labor relations act
Allows private sector employees to organize into race unions.
Equal pay act
Requires equal pay for employees who have the same wart duties, responsibilities, and experience.
Employee eligibility verification act
Requires employers to verify the employee’s right to work in the U.S.
Wages and Fair labor standards act
Establishes minimum wage, overtone, pay, recordkeeping,and child labor standards.
Occupational safety and Health act of 1970
Requires employers toprovide a safe work environment.
Health Insurance portability and accountability act
Protects the privacy of rindnidually identifiablehealth information.
Employee retirement income security act
Sets minimum standards for pension plans in the private sector
Consolidated omnibus budget reconciliation act
Requires employers with 20 or more employees to continue group medical coverage if employment is terminated, working hours are reduced, employment is changed, or in the event of death, divorce, and other significant life events.
Civil rights act of 1991
Prohibits discrimination on the basis o sex, race, color, religion, a national origin.
Age discrimination in employment act
Prohibits age discriminationin employment for persons age 40Er over
Accounts payable
Amounts owed to the suppliers of goods or services that have not yet been paid
Accounts receivable
Money that others owe to the business through invoices for services.
Assets
Any tangible resource that can be measured in monetary terms, including current assets, fixed assets, and other assets
Chart of accounts
A list of the various accounts a business uses to keep track of $, along with corresponding account numbers used for data processing.
Current assets
Resources of a business that are converted to cash within are year
Direct labor
All labor of technical staff, principals, and support staff that is directly charged to projects
Direct personnel expense
The expense of employee salaries plus the cost of mandatory and discretionary expenses and benefits such as payroll taxes and health insurance
Discretionary distribution
Voluntary distribution of profits to owners and non-owners such as performance bonuses, profit sharing, and incentive compensation.
Fixed assets
Resources that the firm uses and retains for a long time, such as equipment and property
Gross revenue
All of the revenue generated by a business over a stated period of time
Indirect labor
All labor not charged to a specific project a revenue-producing account,such as admin general office time, and marketing.
Liabilities
Claims by people outside the business and claims by owners of the business against the total assets of the business.
Net operating revenue
The $ that remains from billing after deducting fees, expenses, reimbursable expenses, and non-reimbursable project-related expenses.
Other assets
Miscellaneous resources such as securities Er copyrights
Overhead
Expenses occurred to keep a business operating whether Ar not any revenue is being generated, such as vent, software licenses, a fres for power
Cash accounting
Revenue and expenses are recognized at the time the business receives cash or pays a bill,
Accrual accounting
Revenue and expenses are recorded at the time they are earned or incurred, whether Er not cash changes hand. Uses double-entry bookkeeping
Double-entry bookkeeping
All transactions are listed chronologically in a journal. They are then grouped
Into individual accounts sin a ledger.
Balance sheet
Summarizes all assets and liabilities and shows the financial position of the business. All assets listed must exactly match liabilities
Not worth
Total assets less the total liabilities
Owner’s equity
$ invested into the business by the owners or stock holders. Total assets must equal total liabilities plus net worth owners’ equity.
Profit and loss statement (income statement)
Lists all the income and expenses for business for a certain time period.
Project progress report
More detailed, computer generated version of the manually produced charts. Shows hours & labor cost s for each phase of a project
Aged accounts receivable report
Shows the status of all invoices for all projects, whether or not, they have been paid and the age of each invoice, which is the time from the invoice date to the payment date or to the current date if still unpaid
Time analysis report
List, each employee along with the number of hours he or she has spent on direct labor, indirect labor, vacation, time, sickleave, and holidays
Current ratio
The current assets, divided by total current liabilities. This is a measure of a firms ability to meet current obligations.
Net profit before tax
The percentage of profit based on net revenue: the total annual revenue, minus consultants fees, and reimbursable expenses
Overhead rate
Total office overhead, divided by total direct labor should be in the range of 1.3 to 1.5.
Quick ratio
A refinement of the current ratio, including only cash and cash equivalents, plus accounts receivable, plus revenue, earned, but not billed, divided by total current liabilities
Revenue per technical staff
The amount of net revenue, produced per technical staff member, or those staff members most directly involved with charging direct time and producing jobs
Revenue per total
The amount of net revenue produced per staff member per year, including principles and part-time employees
Liability
The legal responsibility for injury to another person or damage to property
For conditions for negligence
(One) legal duty established between the parties. (Two) breach of that duty. (Three) damage or injury, caused by said breach. (Four) actual damage or harm to the second party.
Statute of repose
Similar to a statute of limitations, except that the time limit is usually much longer, and does not begin until substantial completion or some other fixed dates. Usually between five and 10 years.
Professional liability insurance
Protects architects in case one of their actions in performance of their professional duties causes bodily injury property damage for other damage
Project professional liability insurance
Intended to cover only one specific project, usually paid for by the client, and used for larger complex projects, or if the client requires it
General liability insurance
Protects against claims of property, damage and personal injury for incident that occurred on or off the policyholders premises caused by architects for their employees, consultants, or other people, hired by the architect
Property insurance
Protects the architects building and the buildings contents against disaster, such as fire, theft, and flood
Personal injury, protection
Protects against charges of slander liable, defamation of character, misrepresentation and other torts (a tort is a civil wrong.)
Employment, practices liability, insurance
Protects an architect against claims, brought by employees such a sexual harassment, discrimination, and wrongful termination
Worker’s Compensation
Protects employees in the event of injuries caused by work related activities
Contractual liability
Contracts that an architect signs may contain provisions that transfer another’s legal liability to the architect
Intellectual property insurance
Protects an architectural firm from claims of copyright, trademark or patent infringement arising from the architects actions. It protects the architect from a suit by competitors from infringement.
Technology liability insurance
Covers claims arising from alleged negligence in managing the security of a computer system
Automobile insurance
Covers liability and property. Damage to vehicles, owned and used by the business and the course of doing business. Can also include protection against claims, made by employees who use their own cars while on company business.
Umbrella insurance
Provides higher limits for general liability, automobile, and employers liability policies
Insurance for existing structures
Typically obtained when remodeling or constructing an addition
Loss of use, business interruption, and delay, incompletion insurance
Reimburse the owner for the loss of use of the property, or the end ability to conduct normal operations
Ordinance or law insurance
Covers the cost to satisfy minimum requirements of any law or ordinance, regulating the demolition construction repair, replacement, or use of the project
Expediting cost insurance
Covers reasonable and necessary costs for the temporary repair of damage to insured property in for expediting the permanent repair or replacement of the property
Extra expense insurance
Provides for the reimbursement of the reasonable and necessary, excess costs incurred during the period of restoration or a pair of damage to property
Civil authority insurance
Covers losses arising from an order of a civil authority. Prohibiting access to the project provided such order is the direct result of physical damage covered under the required property insurance.
Ingress/egress insurance
Covers loss due to the necessary interruption of business, due to physical prevention of ingress or egress from the project as a direct result of physical damage
Soft costs insurance
Covers a range of miscellaneous costs to reimburse the owner for costs due to the delay of the project
Cyber security insurance
Protects against losses from breaches in data security and privacy, including the costs of investigating potential or actual data breaches
Project delivery
Describe the entire sequence of events, needed to provide an owner with a completed building. Includes the selection of people who were designed and constructed project, establishment of contractual, relationships, and some method of organizing contractors to perform the work.
Project scope
The size and complexity of the project, as well as what is unknown about the project when the construction contract is signed
Design bid build
The architect designed the project and prepares the construction drawings and specifications. These documents are use as the basis for pricing the project and awarding a construction contract. The contractor than builds the project or the architect provides contract administration services. The main disadvantage is that the design phase must be completely finished before construction proceeds.
Construction manager as advisor
The CM advises on the constructibility of the design as it is developed provide to early cost, estimating in value analysis, complete project, scheduling assist with contract, negotiations managers, multiple construction contracts and fast track construction makes early material purchases, and in some cases gives a guaranteed price and completion date
Faster, tracking
Architectural and engineering documents issued in stages, often called bid packages, allowing the construction process begin before the design process is completed
Construction manager as constructor
The construction manager is part of the contracting firm, which has a single agreement with the owner, covering the construction management services, as well as the construction services provided
Control estimate
The sum of the CM is estimate of the cost of the work plus the CMS fee
Design build
The owner contracts with one entity to provide both design and construction services; that entity, then subcontract portions of the work to others as needed
Bridging
Owner hires, an architect or engineer to be the project manager. The AE access and advisor and works with the owner to develop the project requirements that will be used by the selected design build firm. When it design build furnace selected this firm takes over the AE’s responsibilities and produces the final detailed construction documents.
Design assist contracting
Specially, subcontractors or trades are included early in the design and construction document phases to help with the development of complex or unique portions of the building
Integrated project delivery
All participants collaborate closely from the projects, earliest conceptualization to move in
Single party entity
Independent limited liability company newly created for the sole purpose of planning, designing, and constructing a particular product
