Term
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Definition
simplest business type
company is owned by an individual and operates under ither the individual's name or a company name |
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Term
| sole proprietorship advantages |
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Definition
| easy to set up, total management control by the owner and possible tax advantages |
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Term
| sole proprietorship disadvantages |
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Definition
| owner is personally liable for all debts and losses of the company |
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Term
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Definition
| 2 or more people share in the management, profits, and risks |
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Term
| general partnership advantages |
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Definition
| relatively easy to form and provide a business with the skills and talents of several people rather than just one |
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Term
| general partnership disadvantages |
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Definition
| all the partners are responsible and liable for the actions of ther others |
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Term
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Definition
| an association of individuals, created by statutory requirements, having an existence independent from its members |
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Term
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Definition
| is corp. is sued. the personal assets of the stockholders are not at risk. |
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Term
| corporations disadvantages |
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Definition
| initial set-up costs adn the continuing paperwork and formal requirements necessary to maintain the business |
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Term
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Definition
| for professionals such as interior designers, similiar to other forms of corps. except that liability for malpractice is generally limited to the person responsible |
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Term
LLC and LLP
limited liability companies and
limited liability partnerships |
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Definition
| hybrid business organizationsthat combine the advantages of the corp. and the partnership |
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Term
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Definition
| the liability is limited to a member's investment; a member has no personal liability |
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Term
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Definition
temporary association of two or more persons or firms for the purpose of completing a project;
they are treated as partnerships and cannot be sued like corps. can |
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Term
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Definition
| where a project moves from one department to another |
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Term
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Definition
| each studio is responsible for completing an entire project, from initial planning to production and construction admin. |
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Term
| professional liability insurance |
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Definition
protects designer in case some action by designer causes bodily injury or property damage
aka: malpractice or errors and omissions
ex: incorrect specs, mistakes on drawings, or incorrect installation of furniture |
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Term
| general liability insurance |
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Definition
| protects against property damage, liability, and personal injury caused by designer or employees, consultants, and others hired |
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Term
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Definition
protects designer's bldg. and contents against disasters
ex: fire, theft, flood
even if only renting the space |
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Term
| personal injury protection insurance |
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Definition
| protects against slander, libel, defamation of character, or misrepresentation |
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Term
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Definition
| liability and prop. damage to vehicles owned and used by the business |
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Term
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Definition
mandatory in all states
protects employees in event of injuries caused by work-related activities |
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Term
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Definition
the owner is required to carry their own liability ins. as well as prop. ins. for the full insurable value of the work
this insures against physical loss or damage caused by fire, theft, vandalism, and malicious mischief |
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Term
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Definition
general conditions of the contract requires that the contractor carry ins. that will protect form the follwing
claims under worker's comp.
claims for damages b/c of bodily injury or death
claims for damages relat4d to use of motor vehicles, etc. |
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Term
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Definition
2 types
basic accting - day-to-day operations
banking, taxes,and auditing
active accting - to keep up to date on the financial status of the business |
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Term
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Definition
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Term
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Definition
| money that others owe the business through invoices |
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Term
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Definition
| tangible or intangible resource that can be measured in monetary terms |
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Term
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Definition
| a list of the various accts. a business uses to keep track of money along with corresponding acct #s used for data processing |
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Term
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Definition
| General conditions of the Contract state that contractors must carry insurance |
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Term
| what contractor's insurance cover |
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Definition
claims under worker's comp.
claims for damages b/c of bodily injury or death
claims for personal injury, slander, false arrest, etc.
claims for damages other than to the work being done
claims for damages on motor vehicles |
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Term
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Definition
| the most common method is to charge an hourly rate or billing rate |
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Term
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Definition
factor derived by dividing net revenue of the design firm by the cost of direct labor
usually from 2.7 to 3.0
ex: if designer is paid $40.00 per/hr and net multiplier is at 3.0, then the billing rate for that employee is $120.00 per/hr |
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Term
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Definition
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Term
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Definition
| requires that anyone who wants to practice interior design must meet certain requirements and obtain a license form the state to practice |
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Term
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Definition
| regulates who can use the title "interior designer" |
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