What are some less-common Methods of Financing Business Operations? Specific types of business operations may allow for unique ways to finance operations outside of the traditional debt or equity relationships. Several of these approaches are discussed below: Contractual Business Sales In the event you are purchasing an existing business, rather tha...

What is a Tax Loss Carryforward? A tax-loss carryforward refers to a situation where a firm generates a mechanism that helps them to keep track of its cumulative losses which are subtracted from future years profits until the cumulative losses balance comes to zero. In other words, tax loss carryforward moves a tax loss from the previous years incom...

What is a Cash Out Merger? A cash out merger refers to a merger between two companies where the shareholders of the target firm don't want to be involved with the acquiring organization. Cash out mergers are sometimes referred to as squeeze out mergers or freeze out mergers when shareholders are coerced into selling off their shares in the company b...

What are Escrowed Shares? Escrowed Share or Escrowed Security is a financial term used to describe shares held in an escrow account with a third party, pending completion of a business transaction. An escrow agent is a third party who holds the security on behalf of both parties until instructions are received for further action. When are Escrowed S...

What are the York Antwerp Rules? The York Antwerp Rules are a set of model internal maritime rules concerning the rights and obligations of vessel and cargo owners when cargo aboard a vessel must be jettisoned (thrown overboard). The rules were created by an international committee in 1864. The rules are now promulgated by the Comite Maritime Intern...

What is a Countertrade? Countertrade is a system of trade where buyers import machinery, equipment, technology, and raw materials from foreign manufacturers on a credit basis and agree to pay back the debt with other products or labor in a given time frame.  Also, countertrade is an international trading system in which governments decrease the trad...

What is a Buy-back Allowance (Contracts)? A buy-back allowance is a clause in a sales contract stating that a vendor may repurchase a the goods sold upon specified conditions. This means that the seller agrees to offer a sum of money (an allowance) to the buyer in a situation where the seller desires to repurchase the good or if the seller wishes to...

What is Disruptive Innovation? Disruptive innovation, first proposed by Harvard Professor, Clayton Cristensen, concerns the creation of new markets or value networks through innovations.  The innovations disrupt, and often displace, existing markets, value networks, and economies.  Governments and industry regulators must often work from behind to a...

What is Imputed Value? An imputed value of an item should not be confused with the actual value. An imputed value is assigned to an item when the actual value is not known, hence, this value is realized based on an assumption or estimation of the actual value. An imputed value is otherwise called an "estimated imputation." When the true or actual va...

Can Parties Challenge a Mediation? Parties to mediation can challenge any agreement resulting from the mediation by bringing a legal action alleging fraud or impropriety in inducing their agreement to a settlement of the underlying dispute. What is the process for Challenging the mediation agreement? A successful mediation results in a negotiated se...