See Also: Evaluating and Renewing Employee Health Insurance Plan How to avoid additional insurance premiums Insulate Your Company from Rising Health Insurance Costs How to Select Your Commercial Insurance Broker Credit Life Insurance Third Party Insurance Definition Third party insurance, defined as insurance purchased by an insurer (1st party) to protect the insured (2nd party)
Sole Proprietorship Definition The sole proprietorship definition is a private business owned and operated by one individual. Furthermore, a proprietorship is unincorporated and is not a legal entity separate from its owner. As a result, the owner earns all of the profits and incurs all of the losses from business operations. Therefore, the sole proprietor
See Also: Loan Agreement 5 C’s of Credit (5 C’s of Banking) Self-Liquidating Loans How important is personal credit in negotiating a commercial loan? Loan Origination Fee Term Deposit What is a Term Sheet? Preparing a Loan Package Loan Term Definition Loan term, defined as the period of time between when a loan is received
See Also: Tips on How to Manage your Lawyer What should General Counsel’s relationship be with a Board Corporate Veil Definition Corporate Veil Ten In-House Secrets for Reducing Your Company’s Legal Costs Red Herring So What Is the Problem With Intellectual Property Risk? What do a small business software company, a privately held manufacturing company,
Limited Liability Limited Partnership (LLLP) Definition A Limited Liability Limited Partnership or LLLP is a form of business that contains a group of general and limited partners. Generally, the general partners have a managerial interest in running the business; whereas the limited partners have solely a financial interest, or what they invested in the company.
Interest Expense Formula Interest expense calculations involve 4 parts: Principal, Rate, Time, and Compounding. Use the following formula to calculate simple interest expense (which excludes compounding): Interest Expense = Principal X Rate X Time To calculate the compound interest rate, use the following formula: Principal X (1+ (R / N))(N X T) Where: R =
See Also: Sole Proprietorship Partnership Limited Partnership S Corporation Tips on How to Manage your Lawyer General Partnership A general partnership, defined as a private business owned by two or more general partners, is one of the most common legal entities which do business. Furthermore, it is unincorporated. General Partnership Explanation A general partnership, explained
See Also: Ex Works (EXW) How to manage inventory Just in Time Inventory System Inventory Cost Accounting Principles Freight on Board (FOB) Definition Freight on Board, known internationally as Free on Board, are the terms of a transaction within a contract. The terms are there to determine liability and when revenue recognition can take place
See Also: Blue Sky Laws Tips on How to Manage your Lawyer Theory of Constraints Trade Credit Compliance Audit Hold Harmless Hold harmless, defined as a clause which defines both parties as not responsible for any loss, damage, and other issue from a contract, is common in the business world. A hold harmless indemnity agreement is used
See Also: Freight on Board (FOB) Ex Works (EXW) Delivery Order Delivered Duty Unpaid (DDU) Cost of Goods Sold (COGS) Delivered Duty Paid (DDP) Definition Delivered Duty Paid or DDP means that a seller or vendor has assumed all of the liability as well as the costs associated with transportation internationally. Delivered Duty Paid (DDP)
See Also: Deferred Income Tax Deferrals Income Statement Accounting Principles Generally Accepted Accounting Principles (GAAP) Deferred Revenue Definition Deferred revenue is considered a liability to companies that contain them. It occurs because a customer has paid for a product or service, but the company has yet to provide the product or perform the service. Deferred
See Also: Marginal Tax Rate Prepaid Income Tax Flat Tax Rates Tax Brackets Deferred Revenue Cash Flow After Tax Deferred Income Tax Definition In accounting, the deferred income tax definition is a liability listed on the balance sheet. It represents an obligation to pay taxes. Deferred Tax Asset and Liability Most large corporations prepare two sets
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