Framing Up a Negotiation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Communications & Negotiation

How to identify the key characteristics of a negotiation?A negotiation should begin by framing up the negotiation from the point of view of both parties. While a party will generally know or be able to identify key characteristics of their own position, she will have...

Prioritize Issues in a Negotiation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Communications & Negotiation

How to Prioritize Issues in a Negotiation?When there are more than one interest in a negotiation, those interests should be dealt with collectively. Poor negotiators generally address interests individually. It sacrifices the ability to use the issues strategically...

Bargaining Mix in Negotiations – Explained?

by TheBusinessProfessor | Feb 23, 2025 | Business Communications & Negotiation

What is the Bargaining Mix?The bargaining mix is the makeup of interests at stake in a negotiation.How to define the issues or negotiation goals?Developing a negotiation strategy usually begins with an analysis of what is to be negotiated or the bargaining...

IRC 83a (Stock for Services) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What happens if the equity received by the shareholder is in exchange for services to the corporation?Providing services to a corporation in exchange for stock is generally a taxable event. Pursuant to IRC Section 83(a), the shareholder receiving the stock will be...

Tax Planning When Funding a Business – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

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 value other than an ownership interest, and shareholders...

Active and Passive Income and Losses – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business 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 to a special allocation in a partnership....

Tax Basis (Business) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the 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 sold for a lower amount, there...

Stability, Expansion, and Retrenchment Strategies – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What are Stability, Expansion, and Retrenchment Strategies?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...

Overfished Ocean Strategy – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is the Overfished Ocean 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...

GE – McKinsey Matrix – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is the GE Matrix?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 maximum yield from each small...