What is C Corp vs S Corp? Potential or existing business owners often face the choice of setting up either as a C Corp vs S Corp when starting a new business or changing their business structure. For everyone’s guidance, business goals primarily determine whether to incorporate as a C Corp vs S Corp. Both…
What are the Best Organizational Structures for a Business? Organizational structures are essentially blueprints that reveal how companies are run and managed and how information is passed within the organization. An organizational structure is literally a chart or diagram that depicts the logistical organization of a company. Finding the most appropriate organizational structure for a…
What is Attrition? Attrition, in a general sense, is a gradual reduction or dwindling of a thing or item. From a business perspective, there are two ways to define attrition. Attrition for a business can be described as either employee attrition or customer attrition – both being very important to understand as a business owner….
What is a Corporate Action? A corporate action is a move – enacted by a publicly-traded company – that encourages or furthers processes that have a direct impact on whatever assets the company issues. In other words, any actions (conducted by a company) that materially alter or otherwise change the company can be considered corporate…
What is a Corporate Reorganization Clause? A corporate reorganization clause is a provision contained in a company’s charter. The provision guides mergers and acquisitions, changes in assets or ownership structure, as well as changes in corporate control. The most common forms of corporate reorganization include mergers and amalgamations, financial restructuring, corporate buyouts, divestitures, etc. While…
Managing Risks in Investment Banking The idea of managings risks in investment banking may seem pretty straightforward, but in order to cover the topic fully, let’s start with a brief overview of what it entails in the general sense. Risk management entails protecting financial assets against loss. In order to do this, risky behaviors or…
What is the National Bureau of Economic Research (NBER)? The National Bureau of Economic Research (NBER) is a not-for-profit organization established in 1920. It aims to produce high-quality and objective economic research for policymakers, businesses, and academia. Some of the most prominent economists are members of the NBER and contribute to its research database. Some…
What is Voodoo Accounting? “Voodoo accounting” is a slang term that describes a system through which profits for a company can be inflated. Unscrupulous and/or flat-out illegal methods of financial record-keeping are used to bolster a company’s bottom line, in large part, to make current investors happy and to attract new investors. Voodoo accounting may…
What is an Associate Company? An associate company, also known as an affiliate company, is a company in which a notable portion of shares is owned by a parent company. The portion usually lies between 20% and 50%. Ownership of higher than 50% of the stock legally turns it into a subsidiary of the parent…
What is Annuitization? Annuitization is the process by which the holder/owner of an annuity receives the payouts from it. The income from an annuity can either be paid out all at once, in a lump sum, or through regular distributed income payouts, in installments. An annuity is a type of insurance contract that is designed…
