What is Indemnity? The word indemnity means security or protection against a financial liability. It typically occurs in the form of a contractual agreement made between parties in which one party agrees to pay for losses or damages suffered by the other party. In corporate law, an indemnity agreement serves to hold Board Directors and…
What is a Focus Group? A focus group consists of a group of individuals who are asked questions about their opinions and attitudes toward certain products, services, or concepts. Focus groups are a common qualitative market research technique used by companies or other entities and are intended to provide an understanding of consumer perception about…
What are Consignment Sales? Consignment sales are a trade agreement in which one party (the consignor) provides goods to another party (the consignee) to sell. However, the consignee has the right to return unsold goods back to the consigner. In other words, a consignment sale is an agreement in which a third party is entrusted…
What is Market Neutral? Market neutral refers to a type of investment strategy wherein an investor can profit from either an increase or a decrease in stock prices. It is usually done in order to avoid a given type of market risk and may be executed in one or more markets. A market neutral strategy…
What is Voluntary Liquidation? Voluntary liquidation is when a company decides to dissolve itself on its own terms, as approved by the shareholders of the company. The decision usually occurs when a company decides that it has no reason for operating anymore, or if it is not feasible to operate anymore. The key factor here…
What is Unlimited Liability? Unlimited liability is the legal obligation of company founders and business owners to repay, in full, the debt and other financial obligations of their companies. The legal obligation generally exists in businesses that are sole proprietorships or general partnerships. Under the two business structures, each company owner is equally responsible for…
What is a Marketing Plan? A marketing plan is a document that lays out the marketing efforts of a business in an upcoming period, which is usually a year. It outlines the marketing strategy, promotional, and advertising activities planned for the period. Elements of a Marketing Plan A marketing plan will typically include the following…
What is Market Orientation? Market orientation is a business approach wherein the processes of product development and creation are focused on satisfying the needs of consumers. It is a type of marketing orientation technique that designs products with qualities that consumers want, which is completely different from the conventional marketing approach. In the conventional approach, the…
What is the Banking and Securities Industry Committee (BASIC)? The Banking and Securities Industry Committee (BASIC) was established in 1970 with the goal of standardizing, automating, and streamlining the processing of stock certificates. It was tasked with ensuring uniformity in the rules and regulations for the processing of both stocks and options. The BASIC attempted…
What are Restricted Funds? In the non-profit industry, restricted funds refer to a reserve of money that can only be used for specific projects or purposes. The funds can be restricted because the donor wants the money to go to a specific program or the donor wants the money to be utilized after a specific…
