What are Non-Renounceable Rights? Non-renounceable rights are issued by the company offering the shareholders the option to purchase additional shares of the company, usually at a price lower than the market price. The rights can neither be transferred to other investors nor sold in the market. Non-renounceable rights lapse if not exercised. Non-renounceable rights are…
What are SMART Goals? Goals are part of every aspect of business/life and provide a sense of direction, motivation, a clear focus, and clarify importance. By setting goals, you are providing yourself with a target to aim for. A SMART goal is used to help guide goal setting. SMART is an acronym that stands for…
What is a Business Segment? A Business Segment (or a Strategic Business Unit) is a subsection of a company’s overall operations in which there is an established, separate product line. A business segment can be identified by the product(s) sold or services provided or by geographical locations that the company operates in. Senior…
What is Shareholder Primacy? Shareholder primacy is a shareholder-centric form of corporate governance that focuses on maximizing the value of shareholders before considering the interests of other corporate stakeholders, such as society, the community, consumers, and employees. The debate between a shareholder approach and a stakeholder approach has been going on for a long time….
What is a Non-Disclosure Agreement (NDA)? A Non-Disclosure Agreement (NDA) is a document that is exchanged between a prospective buyer and a seller in the initial stages of an M&A transaction. The document is exchanged after the prospective buyer shows interest in a company after looking at the teaser of the target. The objective of…
What is Trade Credit? A trade credit is an agreement or understanding between agents engaged in business with each other that allows the exchange of goods and services without any immediate exchange of money. When the seller of goods or services allows the buyer to pay for the goods or services at a later date,…
What is a Tax Haven? A tax haven, or offshore financial center, is any country or jurisdiction that offers minimal tax liability to foreign individuals and businesses. Tax havens do not require businesses to operate out of their country or the individuals to reside in their country to receive tax benefits. Criteria for Tax Havens In…
Federal Deposit Insurance Corporation (FDIC) The Federal Deposit Insurance Corporation (FDIC) is a US government institution that provides deposit insurance against bank failure. The body was created during the Great Depression when the public had lost trust in the banking system. Prior to its formation, a third of US banks had collapsed, leading to the…
A Quick Guide to Startup Funding Raising money from a Venture Capital (VC) firm is extremely challenging. The odds of receiving an equity check from Andreessen Horowitz is just 0.7% (see below), and the chances of your startup being successful after that are only 8%. Combined, that’s a 0.05% or 1 in 2000 success rate….
What is a Real Estate Joint Venture (JV)? A real estate joint venture (JV) is a deal between multiple parties to work together and combine resources to develop a real estate project. Most large projects are financed and developed as a result of real estate joint ventures. JVs allow real estate operators (individuals with extensive…
