ARE Live: Practice Management Mock Exam_ ARE 5.0 PcM Exam 2024

Practice Management
1

@kiaragalicinao @marc

Would you mind providing insight/comments about what I found confusing in this ARE Live?

I think that the answer provided for PcM mock exam question 3a. 2 (timestamps: 18:36) differs from what is explained in the video lecture “Legal Structures for Architecture Firms”, Objective 4.1 (timestamps: 2:36). The question states:

  1. The LLP has an employee slip and fall while in the office, who pays for the damage?

Answer: “Because we carry Worker’s Compensation Insurance, the policy will pay … If the company does not carry Worker’s Compensation insurance, the partnership can be sued.” So far, that sounds correct, but it continues stating that: “and the owner’s personal assets may be considered if the partnership’s assets don’t cover the full costs. Remember, the liability protections are limited.”

This highlighted portion of the answer is the opposite of what I learned from the video lecture “Legal Structures for Architecture Firms”, Objective 4.1, which explains that: “Partners are not liable for business claims against the firm.”

Thank you very much in advance.

2

@coachphilipcolwell @coachthomasmasino

Would you mind providing any insight/comments on this?

3

Take a look at AHPP, pages 199-202, there is good commentary discussing the firm legal structures, specifically the “Backgrounder” blue text. Table 5.1 provides a Summary of Legal Structures; the 4th column lists “Liability Protection for Personal Assets” for each type of legal structure.