Who are the members of a corporation? The corporation is made up of shareholders, directors, officers, and employees. Shareholders are the owners of the corporation. Directors undertake the high-level management and decision-making for the corporation. Officers (and their subordinate employees) run the daily operations of the corporation. Each membe...

What is a Trust Indenture? A trust indenture is an agreement used during the signing of a bond contract between a bond issuer and a trustee that documents the terms and conditions governing the trustee's conduct as well as the trust beneficiaries' rights. The trust indenture represents the interests of the bondholder by underlining a set of rules an...

What is the Environmental Protection Agency? The Environmental Protection Agency (EPA) is a federal agency created to protect the environment by policing activities that have a negative impact upon the environment. Specifically, the EPA is charged with enforcement of the various federal environmental statutes, writing regulations, conducting environ...

What is a Self-Regulatory Organization? An organization that has the power to regulate an industry, develop a profession, or has enforcement authority over an industry is referred to as a self-regulated Organization. A self-regulated organization (SRO) is a non-governmental organization whose regulatory authorities can exit in place of government re...

What is a Private Letter Ruling? A private letter ruling refers to a written statement that the Internal Revenue Service (IRS) issues to taxpayers in response to their request for interpretation of some of their specific complex tax situations. In other words, taxpayers may seek guidance from the Tax Exempt and Government Entities Division regarding...

What is a contract? A contract is a legally enforceable promise or an exchange of promises.  To be enforceable, the contract must meet certain elements. There must be an offer, acceptance of that offer, and then an intended exchange of value between the parties. These elements demonstrate a Meeting of the Minds between the parties. That is, the part...

What is a Shrink-wrap Agreement? A Shrink Wrap agreement can be defined as a legal agreement that is packaged within a product. In this type of agreement, products are sealed or enclosed in shrink wrap (plastic wrap) implying that the goods (and thus the legal document) can only be viewed by the customer who purchases it.  The Shrink wrap agreement ...

What is a Bridge Loan? A bridge loan is a type of short-term loan which is used by an individual or company as they secure permanent financing or deal with an existing obligation. It provides immediate cash flow to allow short term obligations to be met. These loans have high interest rates and usually, go up to one year since they are short term. T...

What is an Accounting Concentration? What is generally included in an accounting concentration or major?  This will vary across institutions, however, there are a common set of courses that you will find in any business school.  The first classes that an accounting student will take our financial and managerial accounting.  Financial Accounting Fina...

What is Intensive Distribution?  Intensive distribution is the highest level of product availability. This approach is usually driven by a focus on customer convenience. For example, products like a bag of chips or a soda these are products that have to be really available for consumers to buy them. Otherwise, they'll buy some other version or optio...