Sole Proprietorship – The business is owned by an individual
General Partnership – Two or more people (general partners) share in the
management, profits and risk of the business
Limited 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)
C Corporation – An association of individuals (stockholders, directors and officers) that
exists as a legal entity apart from its members
Stockholders – Owners of the corporation in proportion to the number of shares they
own
Directors – Have the fiduciary duty to act in the best interest of the stockholders and
are responsible for broad policy decisions
Officers – Carry out the day-to-day management of the corporation
S Corporation – 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 – Similar to other corporations except that liability for
malpractice is limited to the person responsible for the act.
Limited Liability Company (LLC) – 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 – 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 – 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 – 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 – 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 – 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)
Studio Organization – Staff is organized in groups called studios. Each studio is
responsible for completing an entire project (Vertical Organization or Tall Organization)
Outsourcing – Contracting with another company to do some of the work needed for a
project
Support Staff – Employees other than the professional staff and senior management
Business License – Allows the business to practice and usually serves as a basis for
taxation
Certificate of Authorization (COA) – Some states require a firm to obtain this in order to
offer services to the public
Human Resources Management – Involves the entire range of hiring, compensating,
managing and terminating employees, along with the legal responsibilities of having
employees (personnel management)
Formal Employee Contract – Spells out the employee’s responsibilities, work duties
and compensation, as well as the firms benefits, work conditions, termination
procedures and policies
Independent Contractor – Person hired for a specific project. They control where and
how they perform their work and provide their own supplies and equipment
Job Description – Defines the duties and responsibilities of the person holding a
specific job title
Personnel Policy Manuel – A positive statement of the firms commitment to employees,
clients and the public at large
Compensation – Any kind of payment made to employees for work – a base salary +
benefits