Term
24-1. An interior designer could determind which clients have not paid by looking at the:
a. aged accounts receivable
b. balance sheet
c. cash flow statement
d. income statement |
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Definition
| a. aged accounts receivable |
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Term
24-2. If, during construction, an interior designer repeatedly tells a contractor how to install certain finishes, this could give rise to:
a. a breach of duty
b. a claim of negligence
c. liability exposure
d. a third party claim |
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Term
24-3. The owner of a restaurant calls an interior designer and says she would like to hire the designer to complete a project because she is unhappy with the work the current architect is doing. What should be the designer's first response?
a. decline the offer and tell the resturant owner the original architect must complete the project.
b. tell the owner that a working agreement could be discussed only if the architect were no longer working on the job.
c. suggest that the designer and the architect work together to complete the project to the owner's satisfaction.
d. tell the owner that design work could begin while waiting for a letter from the owner stating that all contractural relationships with the original architect have been severed. |
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Definition
| b. tell the owner that a working agreement could be discussed only if the architect were no longer working on the job. |
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Term
23-4. A shipment of furniture is vandalized in a storage area at the job site. Whose insurance will cover the loss?
a. the interior designer
b. the owner's
c. the contractor's
d. the furniture dealer's |
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Term
Which business organization allows the most control by it founders?
a. sole proprietorship
b. partnership
c. professional corporation
d. subchapter S corporation
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Term
24-6. In order to reduce fees to be competitive in a local market, an interior designer should first consider reducing:
a. indirect labor costs
b. capital expenses
c. profit
d. salary rates |
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24-7. What would be the most appropriate type of marketing for a design firm just beginning business?
a. well-designed business stationery and a quarterly newsletter
b. a direct-mail campaign to targeted client types.
c. advertising in local magazines where business is wanted
d. a corporate identity package and a capabilities brochure |
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Definition
| d. a corporate identity package and a capabilities brochure |
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Term
24-8. which of the following is NOT generally considered a trade source?
a. artisan
b. general contractor
c. manufacturer's representative
d. furniture showroom |
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Term
24-9. What type of insurance is LEAST necessary for a practicing interior designer?
a. employee health
b. worker's compensation
c. general liability
d. automobile |
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Term
24-10. What type of insurance is an owner NOT required to carry?
a. general liability
b. worker's compensation
c. property
d. errors and omissions |
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