ARE 5.0 | PcM | Section 4 | Lesson 4.1: How business models and structure shape a firm

ARE 5.0 Practice Management (PcM) · Section 4: Practice Methodologies · Lesson 4.1 What kind of firm do you want to run? This lesson covers the three business models (the three E's), starting a firm, choosing a legal structure, how a corporation is governed, and how firms do research, including evidence-based design. In this lesson: • Efficiency, experience and expertise-based firms • The four-part business plan and funding a start-up • Sole proprietorship, partnership, LLP, corporation (C and S), LLC • Stockholders, directors and officers • Research categories, methods and sources • Evidence-based design: the cycle, the hypothesis, POE, IRB and EDAC • 2 exam traps and a quick check 📘 PcM Study Booklet: [link] ▶️ Full PcM playlist: [playlist link] ⏮️ Previous: Lesson 3.3 · Weighing a project's risk against its reward [link] ⏭️ Next: Lesson 4.2 · Design, coordination and quality methods [link] CHAPTERS 0:00 What kind of firm? 0:26 The three E’s: three business models 1:00 Starting a firm 1:30 Choosing a legal structure 1:58 Inside a corporation 2:30 Research: categories, methods, sources 3:05 Evidence-based design (EBD) 3:29 Doing EBD responsibly 4:00 Why firms struggle to do research 4:25 Two exam traps 4:47 Quick check 5:06 Answers and memory hooks 5:36 Up next: Lesson 4.2 ABOUT THIS SERIES One lesson per objective, plus a practice-question session, PcM Math and the PcM Exam Traps. Prepared by Fayez Eissa, architect. DISCLAIMER Independent study guide for exam preparation only. Not affiliated with, sponsored by or endorsed by NCARB, AIA, the Center for Health Design or any other organization named. ARE® and NCARB® are registered trademarks of the National Council of Architectural Registration Boards. Laws vary by state. Not legal, tax or professional advice. Narration uses an AI voice of the author. Content current as of October 2026. #ARE5 #ArchitectRegistrationExam #PracticeManagement