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

Flexible Benefit Package

Required statuary benefits are provided, and employees can choose their additional benefits from a 

menu of options

Performance Evaluation

A formal review performed by a manager to assess each employees performance

National Labor Relations Act

Allows private sector employees to organize into trade unions and protects union employees from 

unfair labor practices (Wagner Act)

Equal Pay Act

Requires equal pay for employees with the same work duties, responsibilities and experience

Employee Eligibility Verification

Requires employers to verify the employee's right to work in the United States

Wages and Fair Labor Standards Act (FLSA)

Establishes min wage, overtime, record keeping and child labor standards in both the private sector and 

in the government employment

Occupational Safety and Health Act of 1970 (OSHA)

Requires employers to provide a safe work environment

Health Insurance Portability and Accountability Act of 1996 (HIPPA)

Protects the privacy of health information

Employee Retirement Income Security Act (ERISA)

Sets min standards for pension plans in the private sector for employers who have a pension plan 

program