What are the Rights of Owners in a New Business? As discussed in the previous lecture, control and ownership are separate concepts in a business venture. Control, itself, is a right that may be bestowed unto owners. Control is generally determined by the type of entity and the position held in that entity. For example, a partner is assumed to have e...

What is Lead Time? Lead time is a term that refers to the time between the beginning of the beginning and completion of a process. For example, in a manufacturing company, lead time is the time the company begins to manufacture a product and the time manufacturing is completed. How is  Lead Time Used? The term lead time can be used in various aspect...

What is the American Association of Retired Persons? America Association of Retired Persons (AARP) is Americas non-profit organization which provides various benefits to those Americans who are nearing or have reached retirement age.  AARP was founded in 1958 by Dr. Ethel Percy Andrus, a retired educator. The organization currently has more than 40 ...

What is Contingency Approach to Management Theory? The contingency approach, often called the Situational Approach, is based upon the premise that all management is essentially situational in nature. All decisions by managers will be affected (if not controlled) by the contingencies of a given situation.  What are Contingencies?  Contingencies are s...

What is Cartage? Cartage refers to expenses related to freight, loading, and unloading. These expenses are related to purchase or sale of goods. In this case, goods refer to raw materials, semi-finished goods, consumable items, or already finished goods ready for trading. When cartage is paid for anything besides trading items, it is recorded under ...

What is Amortization of Bond Costs? Amortization of bond costs is a process of adjusting the nominal interest expense of a bond to the actual interest expense. How Does Amortization of Bond Costs Work? There are only two methods amortizing bond costs: Straight-line bond discount or bond premium When this method is used to amortize the premium or dis...

What is the Endangered Species Act of 1973? The Endangered Species Act (ESA) protects animals and plants that the Secretary of Interior or marine species that the Secretary of Commerce lists as threatened or endangered. The Fish and Wildlife Services (FWS) and National Marine Fisheries Services administer (NMFSA) administer the ESA. The determinatio...

Do third parties have any right to enforcement a contract to which they are not parties? A third party may enforce a contract in which she has rights. She only has rights in a contract if the parties to the contract intend to benefit the third party at the time of entering the contract and that intent is manifest within the agreement. A third party ...

What is Stock Option Backdating? Backdating Stock Options is a way of rewarding employees with options that are In the Money (ITM) and hence of immediate value. The option is awarded with a time stamp that predates the actual time of the option issue. The difference in the value of an option on the actual date it is issued vs. its value on the backd...

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...