What is a Voting Trust Agreement? A voting trust agreement is a legally binding document that allows shareholders of a company to transfer their voting rights to a trustee. This trustee then exercises these voting rights on behalf of the shareholders, typically for a specified period of time. The purpose … …
Voidable Contract Definition Voidable contracts are different from void contracts, which are considered invalid from the beginning and have no legal effect. In contrast, a voidable contract is valid until it is voided by the party with the option to do so. There are various reasons why a contract may … …
Definition and Scope In the world of business, a firm refers to an organization or company that is involved in the production and distribution of goods and services. It can be a small local business or a large multinational corporation. The scope of a firm can vary greatly depending on … …
What is IRS Publication? IRS Publication refers to a series of documents published by the Internal Revenue Service (IRS) of the United States government. These publications provide detailed information and guidance on various tax-related topics, including tax laws, regulations, forms, and procedures. The IRS publishes a wide range of publications, … …
Statute of Limitations: Definition, Types, and Example The statute of limitations refers to the time limit within which legal action can be taken for a particular offense or claim. It is a crucial aspect of the legal system that ensures fairness and prevents the filing of lawsuits or claims long … …
What is Small Business Administration (SBA)? The Small Business Administration (SBA) is a United States government agency that provides support and resources to small businesses. It was established in 1953 with the goal of promoting and assisting small businesses in the country. Role of SBA The SBA plays a crucial … …
Predatory Pricing: Definition, Example, and Why It’s Used Predatory pricing is a pricing strategy used by businesses to gain a competitive advantage by setting prices below their competitors’ costs. This tactic is often employed to drive competitors out of the market and ultimately establish a monopoly or dominant market position. … …
What is a Multiple Employer Welfare Arrangement (MEWA)? A Multiple Employer Welfare Arrangement (MEWA) is a type of health benefit plan that allows small businesses to join together to provide health insurance coverage to their employees. MEWAs are governed by specific regulations and rules to ensure compliance and protect the … …
Licensing Fee: Definition, How It Works vs Royalty, and Examples A licensing fee is a type of payment made by an individual or company to obtain the rights to use a certain intellectual property or product. This fee is typically paid to the owner or licensor of the intellectual property, … …
Hold Harmless Clause Definition The purpose of a hold harmless clause is to shift the responsibility for certain risks from one party to another. By including this clause in a contract, one party agrees to assume the liability for any harm or damages that may arise from the performance of … …
The Origins of the Grandfather Clause The grandfather clause is a legal provision that exempts certain individuals or entities from new laws or regulations based on their previous status or actions. It is often used to protect existing businesses or individuals from the impact of new regulations, allowing them to … …
Definition and Purpose A Family Limited Partnership (FLP) is a legal structure that allows family members to pool their assets and manage them together as a partnership. It is formed by family members who contribute assets to the partnership and become partners in the business. FLPs are commonly used by … …
What is an Engagement Letter and Why is it Important for Small Businesses? An engagement letter is a legal document that outlines the terms and conditions of a professional engagement between a service provider and a client. It serves as a contract and sets clear expectations for both parties involved. … …
What is the Catalog of Federal Domestic Assistance (CFDA)? The Catalog of Federal Domestic Assistance (CFDA) is a comprehensive listing of all federal programs, projects, services, and activities that provide financial assistance to individuals, organizations, and state and local governments. It serves as a valuable resource for those seeking funding … …