What are Internal Controls? Internal controls refer to accounting policies and auditing procedures that ensure that the accounting information of a company are accurate and reliable. Companies set up internal controls to achieve a number of objectives. The forms of internal controls in a company determine how complaint, it will be to credible accoun...

What is Vertical Integration? Vertical integration is basically when a company is able to control several vertical levels of the supply chain. In the supply chain, we have a number of stages such as; raw material, manufacturing, distribution, and retail. A company may play a role of manufacturing, distributing and retailing. When a firm is able to i...

When Should Startups Consider Doing an Initial Coin Offering rather than a VC Round of Funding? Initial coin offerings (ICOs) are a relatively recent phenomenon. Technology companies, unsatisfied by the traditional routes of securing operational funding, created a method of raising funds without the use of debt funding or venture capital. In summary...

What to Do in an Integrative Negotiation? Begin by understanding the primary approach to a distributive negotiation. As part of any negotiation procedure, you must assess your interests and strategy.  Below, we outline unique or additional components to the process to make the negotiation integrative in nature.  Steps in an Integrative Negotiation S...

What is Insufficient Funds?  Insufficient funds, as the name implies, is a situation where a particular account does not have enough funds, capital or resources in it to offset a particular payment request. Besides being called "bouncing a check", it is also known by the acronym NSF which stands for non-sufficient funds". Back to:BANKING, LENDING, &...

When is payment on a negotiable instrument overdue? An instrument is overdue when the obligation to pay arises (upon presentment), but it has not been paid. An overdue instrument may give rise to a cause of action against a maker or drawee for failure to pay; also, it may make the instrument unenforceable as against a payor or drawee. When a negotia...

What is Multiple Discriminant Analysis? Multiple discriminant analysis (MDA) is a statistical measure that financial planners use to ascertain the prospective investments when a lot of variables need to be considered. It minimizes the dissimilarity between many variables, and organize them into large groups, where they can be compared with some othe...

What is a Type I Error? A type I error is a type of error that occurs in statistical hypothesis testing in which a true null hypothesis is rejected. When a null hypothesis which is actually true is rejected when it should not be, a type I error has occurred. In statistical hypothesis testing, a null hypothesis is often established before the test. A...

Overview of Intellectual Property Intellectual property, as the name implies, is an intangible form of property right. It establishes rights that extend beyond the possession of a physical item and protects and individuals ideas, plans, procedures, information, creations (function and design), etc. This chapter introduces the concept of intellectual...

What is a Rolling Closing Date? In seed rounds it is common to have a rolling closing date. This means that investors will join the round and provide funding before all investors necessary to meet the target amount have committed. The startup cannot wait to close the seek round until all investors commit, so it will arrange for multiple closings.  A...