12 Questions
Which of the following is NOT a reason why a profit is required in a business?
To distribute profits to shareholders
What is the purpose of setting aside a percentage of the profit as a capital reserve?
To have funds for lean years
What does financial management help a firm to do?
Maximize profit
Which factors are considered in a performance review for the distribution of incentive bonuses?
Ability, productivity, and behavior
What should the additional percentage for shareholders or partners' investment represent?
A reasonable return for their financial risk
Where can you find information about performance reviews?
Chapter 3.6 - Human Resources
Which of the following is a key component of a financial plan for an architectural practice?
Revenue projections
What is the purpose of short-term financial planning, also known as budgeting?
To monitor monthly income and expenses
Why is it important for an architectural practice to have a financial plan in case of downsizing?
To resolve issues like lease relief and restructuring
Which of the following is included in projected income?
Actual professional income
What should be considered when adjusting projected income?
Current and projected economy
How are profits usually estimated in relation to projected revenues?
As a percentage
Test your knowledge on profit and financial management in the field of architecture with this insightful quiz. Explore strategies to maximize profit, attract investors, secure loans, and grow your architectural business. Challenge yourself and enhance your understanding of financial management principles specific to the architecture industry.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
