by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
[cite] Back to: ACCOUNTING & TAXATION What are Phantom Profits? More specifically, what happens if the business does not distribute any of the profits to the owners? A corporation, or an entity being taxed as a corporation, distributes profits to its shareholders...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
[cite] Back to: ACCOUNTING & TAXATION The vesting of stock options over a period leads to the question, when does the employee pay taxes on the value of the equity received? IRC 83(b) Vesting of Stock Awards and Tax Liability IRC Section 83(b) allows a shareholder...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
[cite] Back to: ACCOUNTING & TAXATION What happens if the equity received by the shareholder is in exchange for services to the corpora.on? Providing services to a corporation in exchange for stock is generally a taxable event. Pursuant to IRC Section 83(a), the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
[cite] Back to: ACCOUNTING & TAXATION CORPORATIONS What tax issues arise when funding a business entity? The salient tax issues when funding a business entity concern the transfer of property to the entity in exchange for an ownership interest, the receipt of...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
[cite] Back to: ACCOUNTING & TAXATION What happens if the business has losses? Business entities with pass-through taxation do not retain losses within the business entity. Losses are passed through to owners based either on the percentage of ownership or pursuant...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
[cite] Back to: ACCOUNTING & TAXATION Tax Basis of a Business Entity Basis is largely a tax concept. By definition, basis is the value that an individual pays for an asset. If the asset is later sold or disposed of for a higher amount, there is a gain. If it is...
by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation
[cite] Back To: BUSINESS STRATEGY Strategies used to make decisions regarding the allocation of resources or pursuing an operational strategy are often categorized as stability strategies, expansion (growth) strategies, retrenchment strategies, or combination...
by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation
[cite] Back To: BUSINESS STRATEGY The Over-Fished Ocean strategy is an alternative to red and blue ocean strategies that addresses resource limits and the need to focus on conserving and maximizing resources along the value chain. Resources refers to any of the inputs...
by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation
[cite] Back To: BUSINESS STRATEGY GE Matrix Definition The GE-McKinsey Matrix is a tool to help prioritize and strategize your business investments among smaller business units. The GE-McKinsey Nine-box matrix functions by providing strategic options on how to get...
by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation
[cite] Back To: BUSINESS STRATEGY Strategic goals or objectives? The most basic strategic goal of any business is growth. You may have heard the refrain, if a business is not growing, it is dying. This is true because of competition. Competitors will enter any given...
