A company’s executives may want to forget a bad operating period , such as a quarter or fiscal year, and wash their hands of the whole thing. However, the retained earnings master account is…
BusinessDictionary.com defines a shareholder as "an individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued."…
Generally, the Internal Revenue Code provides that all income, "from whatever source derived," is taxable, except where another section of the tax code specifically exempts it. The specific…
Businesses vary greatly in terms of the types of products and services they provide to consumers, but all businesses must choose from a few basic legal structures that govern how they are managed and…
The legal arrangement in which one shareholder acts as a trustee for another is known as a voting trust. Voting trusts differ from a typical trust in that actual ownership of the shares is not…
Shareholder equity is a key way of measuring how much a company is worth. It's simply the difference between assets and liabilities. If liabilities are higher than assets, the shareholder equity is…
An S-corporation has fewer than 100 shareholders or can be made up of only one. Unlike an C-corporation, S-corporations divide income and losses among the shareholders, who pay taxes on it as personal…
When you are investing in a company, especially a privately held company, you may want to buy out your majority shareholders. This process would give you more control over the company. If minority…
In private companies, shareholders sometimes attempt to force each other out. This typically occurs when shareholders disagree about the direction or operation of the business, but it could also occur…
A shareholder is an individual or institution that owns part of a company as an investment with the anticipation of earning income in future. The owners of the company are entitled to part of the…
A shareholder's derivative right or stockholder's lawsuit is a shareholder's right to sue on behalf of the corporation when the corporation has refused to pursue a legal claim or cause of action.…
Shareholders, especially minority shareholders, are often viewed as wielding no power and having no impact on business policies and operations. This is a gross misconception. Shareholders, like…
When you have to file a Chapter 7 bankruptcy, you have a legal obligation to provide the court with all the required bankruptcy schedules and forms. If you do not file these required documents, the…
In 2008, the CEOs of many banks received millions of dollars in bonuses while Wall Street crashed. Congress passed regulatory reform in 2010 that requires corporations to give shareholders the power…
Corporations raise funds for short-term and long-term projects by selling debt instruments known as bonds. Additionally, publicly listed corporations can also raise funds by issuing stocks or shares.…
Investment companies include the hodgepodge of organizations that provide investment management services to individuals and companies, administer funds on clients' behalf, and buy and sell securities…
There are various fundamental differences between a partner and a shareholder. To keep it simple, a partner is a person who, in part, owns the running business. A shareholder is a person who privately…
Corporations have potential for creation as well as destruction. A corporation can generate wealth and employment, develop life-saving medicines or distribute affordable food. On the other hand, it…
In global financial markets, investors tend to show an admiration for companies that publish accurate accounting reports. These firms usually receive support for their efforts to shore up corporate…
Investment is the business world's big gamble. Small investments in risky companies may pay off handsomely, while large investments in stable firms often provide long-term income. Any publicly-traded…
A proxy is a person appointed to stand in or take the place of a person who cannot be present, usually in the context of a business meeting or court of law. A shareholder proxy is a person who…
Each company that incorporates must have shareholders. A shareholder is a person with stock in the company. However limited their powers may be, shareholders do have an important role in the…
Maximizing shareholder wealth has to do with maximizing the value of a public company's common stock. A "common stock" of a company can be viewed at the website of the National Association of…
Shareholders are investors who own a percentage, or shares, of a company. Shareholders are entitled to a portion of company profits, which they receive through dividends. The different types of…
Shareholders' meetings are an essential part of business operations. Important decisions are made and important matters are discussed during annual and special shareholders meetings. Shareholders'…
Your company's annual shareholders meeting should be more than a dust-dry occasion for electing directors and dealing with other business matters. The session is also an opportunity for management…