Professional Practice Midterm (corrected)

_________ Requires:

- accreditation

- Examination

- Code of Conduct

- Professional organizations

A profession

What three tests make up the NCIDQ

-Fundamentals

-Professionalism

-Practicum

What three qualifications combine for an NCIDQ Certification

-Education

-Experience

-Examination

Licensure means _____ allows you to practice design

the state

Certification means _____ allows you to practice design

professional originations (like the CIDQ)

Would you need a license or a certification to submit plans directly for permit approval

a License

______________ Act : Defines and legally regulates what interior design activities can be performed and who can legally perform them.

Practice act

______________ act: protects the title of saying your an licensed/registered interior designer

Title Act

In a state with only a ___________ act, anyone can practice interior design, but only designers who meet the qualifications (education, experience, NCIDQ exam) can use the title "Registered Interior Designer."

Title Act

what are the two interior design organizations

IIDA and ASID

__________ means the firm is owned by a single individual

Sole Proprietorships

these are all example of

- House design

- Office design

- Hospitality design

- faculty and planning management

- Home staging

career opportunities

these are all example of _______ __________

- set design

- aviation design

- sports and recreation design

- Museum design

- Library design

- Birthing center design

- music room design

- artwork dealer

- office furniture design

Practice specialties

when must a designer consider these things:

1. Taxes for foreign companies

2. Liability insurance policies

3. Currency conversions

4. Intellectual property rights

5. Local labor situation

6. Legal system

when planning to work internationally

what must a designer consider when doing a self assessment for a job search

ask what you offer in skills and ability to a firm and what you value in a firm

these are examples of ____________ ___________ for job opportunities

- networks

- trade publications

- professional organizations

Global resources

a _________________ firm is focused on public spaces like corporate, hospitality, retail, healthcare, etc

commercial/contract firm

what are the 3 things cover letters do for a professional

- establish a connection between your skill and the position

- provide context to skills and abilities

- have the same visual language as portfolio and teaser

A ______________ has multiple owners and is financially and legally independent.

Corporation (C Corporation

___________ is the knowledge only held in someone's mind. usually due to past experience and experimentation

Tacit Knowledge

__________ is the knowledge that is readily available for anyone to look up

Explicit Knowledge

____________ are examples of professional practice standards

Ethical codes

who establishes interior designer's code of ethics

IIDA and ASID

___________: money is paid after receiving some form of favorable treatment

Kickback schemes

___________: direct payments that are made to ensure favors

Bribes

businesses control more than just their physical property; they control the know-how necessary to produce the exclusive goods or services with which the business is identified. this is known as ____________ _____________

Proprietary information

Using the word __________:

§ Means that the worker should work a certain way

§ This is another way of saying a designer should always respect the code

Shall

________________ is the person or group of people is usually referred to in administrative, nonlegal actions

Complainant

________________ is a requirement that is usually met by the person proving he or she was harmed or suffered damage in some form from actions caused by the plaintiff

Standing

If a committee decides an ethics code has been violated, the process continues with a formal review by a committee of the state board or a national trade group formed to render decisions on these and related complaints

These committees are usually referred to as

Judicial committees

the word _______: is a strong recommendation to do something but not a direct requirement

May

These are examples of ______________ in interior design

- Contractors

- Craftspeople

- Lawyers

- Vendors

- Engineers

- Architects

Allied Professions

These are examples of ___________

- Payment from a client is used to purchase something other than agreed

- Overbilling or Double billing

- Not returning client calls

- Budget issues

- Nonspecific contracts

- Other source of payment to designer not reported to client

common complaints in the profession

when interacting with a furniture product what is the best way to organize it

- product name

- manufacture

- price point

designers should organize their list of manufactures by _________ in order to focus on project sustainability

Location

what is the one thing a designer should make sure they ask for if they are not given it when offered a position

a written offer letter

_____________________________________: this is an employment relationship where either the employer or employee can terminate employment at any time, for any reason—or no reason at all—as long as the reason is not illegal or discriminatory.

an employment at will doctrine

why must designers read their employee handbook

it is a sort of contract with your employer and designers must make sure they don't disagree with any of it

_________: An employer-sponsored retirement plan allowing tax-deferred contributions (pay taxes later, upon withdrawal).

401(k)

________________: Individual retirement account funded with taxed money now; withdrawals during retirement are tax-free.

Roth IRA

____________________: When your employer matches your retirement plan contributions (usually a 401(k)), up to a certain percentage

Retirement Match

These are examples of

• Reimbursement for annual professional dues

• Reimbursement for certifications

• Work hours

• Comp time for volunteer activities

• Relocation costs

what a designer can negotiate

What does SWOT analysis do?

Helps identify disconnects between mission, values, and current outcomes by evaluating internal forces (strengths and weaknesses) and external forces (opportunities and threats)

These are the disadvantages of a ____________________________:

· The owner is personally liable for all debts and losses of the company

· Hard to raise capital and establish credit

· May be difficult to sell the business

Sole proprietorship

_____________:Two or more people share in the management, profits, and risks of the business

A general partnership

________: has one or more general partners and other limited partners

A limited partnership

these are the characteristics of a ________________________:

· General partners invest in the company, manage it, and are financially responsible

· Thes limited partners are simply investors and receive a portion of the profits

o They have no say in the management of the company and are liable only to the extent of their investment

A limited partnership

___________________: an association of individuals, created by statutory requirements, having an existence independent from its members

Corporation (C corporations)

_____________________: have certain eligibility requirements and offer all the advantages of standard corporations, but the profits or losses are paid or deducted from the stockholders' personal income taxes, in proportion to their shares

Subchapter s corporations: (s corporations)

_____________ & ___________ are two hybrid business organizations that combine the advantages of the corporations and the partnership · Each is formed like a partnership where the investors are called members and those who manage are called managers

Limited liability company (LLC) and Limited liability partnerships (LLP)

____________: a temporary association of two or more people or firms for the purpose of completing a project

Joint venture

______________: Typically used in interior design firms when a project is too large or complex to be completed y a single firm

Joint venture

________________: where a project moves through the office from one project to another

Department organization

___________________: based on various smaller groups in the business called studios. Each studio is responsible for completing an entire project from the initial planning to production and construction administration

Studio organization

What are the two ways firms organize design work and projects

Studio organization & Department organization

_____________: liabilities, this is what you owe

Accounts Payable

_________________: this is the money you are owed

Accounts Receivable

____________: this is the costs that keep the business running

- rent

- Utilities

- Office expenses

Overhead

_______________: Direct costs of materials and labor used to complete projects or provide services.

Cost of Goods Sold

What are the two types of accounting methods

cash accounting and accrual accounting

__________: record income when you actually get the money, and expenses when you actually pay the bill.

Cash Accounting

____________________: You record income when you send the invoice (even if payment hasn't arrived yet) and expenses when they are incurred (even if you haven't paid yet). Uses double-entry bookkeeping (every transaction recorded twice: once as credit, once as debit).

Accrual Accounting

____________________: Shows what your business owns (assets) and what it owes (liabilities) at a specific moment in time.

Balance Sheet

________________________________: document that summarizes your total income (profit) minus costs (expenses and overhead), showing if your business is making or losing money over a specific period.

Profit and Loss Statement (Income Statement)

__________________________: Tracks when money actually comes in and goes out, helping you know if you'll have enough cash to operate smoothly and complete projects on time.

Cash Flow Statement

This is your salary + the cost of your benefits

a company's Direct Personnel Expenses (DPE)

___________= DPE (direct personnel expense) * Multiplier

Billing rate

what is the listed current multiplier to find a billing rate

2.5-3.5%

________________: a nine-digit number used by the IRS to identify the tax accounts of employers

EIN- Employer Identification Number

TAX REGISTRATIONCERTIFICATE + TAXPAYER ID is issued by who?

The State

What type of taxes need to be considered for employees on the payroll

- federal income tax

- Social security and Medicare

- Federal Unemployment Tax

- State Income Tax

_________________________________:

- Sets minimum wage, overtime pay, and child labor standards.

- Requires businesses to keep detailed employee records.

Fair Labor Standards Act (FLSA)

______________________: Allows employees up to 12 weeks unpaid leave for family or medical reasons (e.g., childbirth, illness).

Family and Medical Leave Act (FMLA)

___________________: Prohibits employment discrimination based on race, color, religion, gender, or nationality.

Title VII of the Civil Rights Act

_______________: Employers pay taxes funding unemployment benefits. (Not withheld from employee wages.)

Federal Unemployment Tax Act (FUTA)

________________ is Self-employed and no taxes are withheld by hiring business.

Independent Contractor

___________________: Protects employee safety and health in workplaces.

Occupational Safety and Health Act (OSHA)

Protects original creative works (art, design, writing, music) from being copied without permission.

Copyright Law

Protects new and useful inventions or processes from being used, made, or sold by others without permission.

Patent Law

Protects unique names, symbols, logos, or images that identify a company's products or services.

Trademark Law

What are the 3 types of intellectual property laws

- Trademark Law

- Patent Law

- Copyright Law

A type of civil law covering wrongs or injuries done to a person's health, property, or reputation

Tort Law

Laws created by the U.S. government that apply throughout the country (e.g., tax, employment, safety laws).

Federal Laws

Laws that govern agreements between people or businesses, ensuring promises made are legally enforceable.

Contract Law

Rules and agreements that apply to business transactions or relationships between different countries.

International Law

These are examples of _____________ _______________

• Failure to exercise standard of care

• Code violations shown on drawings

• Duties that fall under Practice or Licensing Act

• Practice areas for which not qualified (structural and MEP systems)

PROFESSIONAL NEGLIGENCE

Causing harm on purpose.

Intentional Tort

Causing harm by failing to act carefully or responsibly, as a normal person would.

Negligent Tort

Being legally responsible for harm or damage, even if you didn't mean for it to happen.

Strict Liability

Not meeting the standard of care or responsibility expected from you professionally.

Breach of Duty

Covering a business located in a residence

Home-based business insurance

Protects the assets of a business (office furniture, computers, inventory) in the event of loss and damages due to a certain situation that is prescribed in the policy

Commercial property insurance

Provides money to conduct business operations while a remaining owner attempts to hire a replacement of a founder

Key person insurance

Covers expenses when a business must stop operations because of some specified condition in the policy (like natural disaster)

Business interruption/continuation insurance

Protects against claims of property damage, liability, and personal injury caused by the designer or employees, consultants, or other people hired by the designer

Commercial general liability insurance

_______________: Debt or financial obligations that you owe and must pay back after one year or more (e.g., business loan).

Long-Term Liability

________________: Mistakes or oversights you might make professionally. Often refers to insurance (E&O insurance) covering these mistakes.

Errors and Omissions

_______________: A detailed record of all your financial transactions (money in and out).

Ledger

___________: A document businesses or clients send out to evaluate your qualifications and experience before hiring you.

RFQ (request for qualifications)

Protects you from claims related to mistakes or negligence in your professional services. Sometimes also called malpractice insurance or errors and omissions insurance

Professional liability insurance