ZenBusiness Small Business Glossary

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401K: 401k stands for retirement plans qualified under Section 401(k) of the Internal Revenue Code.

A

Accounting definition: Accounting is a system for recording, analyzing, verifying, and reporting the results of financial transactions.

Accounts Payable: Accounts payable describes the money a business owes its vendors and suppliers for goods and services the company purchased on credit.

Acquisition: The definition of acquisition in a business context is a circumstance where one company purchases control of another company.

Addendum: An addendum is a written and signed document that changes or makes additions to a previously signed contract or official document.

Affiliate marketing definition: Affiliate marketing is a marketing model where an online retailer pays a third-party website a commission each time the website’s referrals generate traffic or sales for the retailer.

After-Tax Profit Margin: An after-tax profit margin is the percentage of revenue remaining once operating expenses, interest, income tax, and preferred stock dividends are deducted from a company’s total revenue.

Agent definition: An agent is a person appointed by a business to act on its behalf for a specified purpose.

Agile Working: Agile working is a flexible way of organizing when, where, and how employees and business owners get work done.

All Rights Reserved: Asserts that the creator of a work retains all the copyright privileges associated with it

Alternative Minimum Tax: The alternative minimum tax applies to high-income earners and is meant to limit the tax benefits that some taxpayers use to reduce their regular tax bill.

Amendment definition: Making certain changes to incorporated business entities like LLCs and corporations requires you to file an amendment to your formation documents with the state.

Angel Investor: An angel investor can help entrepreneurs and startups get the funds they need to help their business idea become a reality or their business grow.

Annual meeting definition: An annual meeting is the yearly meeting of shareholders, upper management, and directors (or managing members) of a company.

Annual report definition: An annual report is a business document filed with the state that gives a short summary of the business’s structure.

Anonymous LLC: An anonymous LLC is a limited liability company (LLC) where the name and contact information of the members and managers are private.

Apostille: A special type of government-issued certification for use in another country.

Arbitration: Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute.

Arm’s Length Relationship: An arm’s length relationship is a relationship where the parties engaged in a transaction act freely, in their own self-interest, and without unduly influencing each other.

Articles of incorporation definition: The document filed with a state government agency (usually the Secretary of State) to create a corporation.

Articles of organization definition: Articles of Organization is a document you file with the state to form a legal entity called a  limited liability company (LLC).

Asset: Assets are any item of value, whether tangible or intangible, that provide some current or future benefit to your business.

Asset Protection Trust: An asset protection trust is a unique type of trust that protects your assets and your estate from creditors.

Audit: An audit takes place when an independent person or group inspects a person’s or business’s accounts.

Authorized Capital: Authorized capital is the maximum amount of capital that a business can raise by issuing shares.

Automation: Automation is the use of an automatic process to accomplish a task with little to no human intervention.

B

B2B: A B2B is a business focused on selling goods and services to other businesses.

B2C: A B2C business sells its products and services to consumers in the general public instead of to other businesses or the government. 

B2G: A B2G is a business that sells its products or services to the government.

B corporation definition: The nonprofit organization B Lab certifies companies as B Corporations. To gain such certification, a company must meet high performance, accountability, and transparency standards.

Bankruptcy definition: Bankruptcy is a federal court process designed to relieve individuals and businesses from unpaid debt.

Barriers to Entry: Barriers to entry are factors that work to prevent a company from entering a new industry or sector. 

Bearer Instrument: A bearer instrument, or bearer bond, is a type of fixed-income security where the issuer keeps no ownership information on record.

Benefits definition: Benefits in the business world cover many different programs that employers offer employees for their health and well being.

Better Business Bureau: The Better Business Bureau (BBB) is a national nonprofit organization dedicated to giving the public the information they need to evaluate businesses.

Bitcoin: Bitcoin is a form of digital currency that is offered independently from any government or financial institution.

Blockchain: Blockchain is a type of shared database that stores data in blocks that are then linked together.

Blog definition: Businesses and news outlets have blogs on their websites to discuss issues, advertise services, or report breaking news. 

Blue Sky Law: Blue sky laws are state regulations that help protect investors against securities fraud.

Board Chair: A board chair heads the board of directors, which is responsible for either managing or overseeing the management of a corporation.

Board of Directors: A board of directors is a group that oversees and makes important decisions about a corporation’s activities. 

Bond: Bonds are debt securities that are issued by companies and governments and sold to investors. As with most debt, bonds have maturity dates, at which point the principal amount must be paid back in full.

Bonus: A bonus is a reward an employee receives that’s above and beyond what they normally earn.

Bottom Line: The bottom line is a business’s profits that are recorded on the bottom line of a net income financial statement.

Bounce Rate: Bounce rate is a term used to state the percentage of website visitors that leave a webpage without taking any action on the page.

Brand definition: A brand is the public perception of your company’s or product’s attributes and qualities.

Brand Loyalty: Brand loyalty is the tendency of customers to buy a seller’s products because they trust the seller.

Breach of Contract: A breach of contract is when someone doesn’t fulfill a promise they made in a legally enforceable contract.

Bridge Loan: A bridge loan is a short-term, high-interest loan meant to finance an immediate purchase or fill a financing gap.

Brochure definition: A brochure is a tangible advertising tool that gives potential customers information about what your business does.

Budget: A budget is an estimation of revenue and expenses over a specified future period of time and is used by governments, businesses, and individuals.

Business address definition: A business address is the physical address you designate as your principal place of business when forming your small business

Business bank account definition: A business bank account is an account that helps an entrepreneur keep business transactions separate from personal ones.

Business credit card definition: Business credit cards are intended for business use only and are a great way to separate your personal and company expenses. 

Business Credit Profile: a business credit profile is a document that shows your business’s ability to pay its bills, like utilities, rent, or credit cards.

Business Cycle: A business cycle is the natural highs and lows of a business and the broader market.

Business Financing: Business Financing is the money business owners require to start, run or expand a business. 

Business Intelligence: Business intelligence is a data- and analytics-driven approach to understanding your business, customers, and bottom line.

Business liability insurance definition: A business liability insurance policy helps cover the cost of bodily injury, property damage, personal injury, and advertising injury claims and lawsuits. 

Business loan definition: A business loan is money or a line of credit a business or individual gives to another business for its startup or operations.

Business Manager: A business manager is a person within a company who oversees employees, strategizes employee productivity, and implements company policies.

Business name definition: A business name is the alias that your legal entity is registered under.

Business name checker definition: A business name checker is a tool that allows you to search businesses registered in your state to see if the name you want to use is taken.

Business plan definition: A business plan is defined as a guide that lays out what your business’s goals are and how you plan to meet them.

Business Registration Certificate: A business registration certificate is an official document that allows the state to recognize your company as a separate legal entity. 

Business Structure: A business structure is how the business is organized and determines who receives the profits, how those profits are distributed, and which employees or members perform the various jobs associated with the business. 

Business Travel: Business travel is a work-related trip that doesn’t include daily commutes, holidays, or vacations.

Buyer’s Market: A buyer’s market identifies a supply and demand effect where an excess supply of a good exists in the market.

Buy-Sell Agreement: A buy-sell agreement is a contract between two or more parties that gives the other parties the right to buy out the other’s interest.

Bylaws definition: Corporate bylaws are the rules established to specify how a corporation is governed and operated.

C

What is a C corporation? (C Corp): C Corps are the most popular type of corporation. It taxes its owners (shareholders) separately from the business. All C Corps must have the following governing positions: president or CEO, treasurer, and secretary.

C-Level: C-level, also referred to as the C-Suite, is a term used to describe a group of a corporation’s most important senior executives.

Call-to-action definition: A call to action is a directive to a business’s consumers to take initiative on a certain task.

Capital: Capital is money or assets that a company has on hand to finance its current operations and grow.

Capital Assets: Capital assets are tangible or intangible things that a business owns that aren’t cash in the bank, but are assets that the business owns to make money.

Captive Market: Captive markets are usually smaller markets where the buyer faces a limited number of competitive suppliers and has no meaningful choice but to purchase goods from the supplier in that location.

Cash: Cash refers to the company’s current assets, and includes any assets that can be turned into cash within one year.

Cash Accounting: Cash accounting is a bookkeeping method where the business records transactions only when it pays or receives money.

Cash flow definition: Cash flow is the flow of money going in and out of a business. 

Cash on Hand: Cash on hand is the amount of accessible cash a business has after paying all its costs.

Certificate of amendment definition: A Certificate of Amendment is a legal document that a business must complete for the purpose of making official changes to the organization’s formation documents.

Certificate of Authority: A Certificate of Authority is a certificate from a state that allows a foreign business to operate in that state.

Certificate of Cancellation: A Certificate of Cancellation is a certificate that effectively cancels your business.

Certificate of Good Standing: A Certificate of Good Standing verifies that a business is an actively operating legal commercial entity with the state.

Certificate of Incorporation: A Certificate of Incorporation is an important legal document that will serve as the official registration document for your corporation.

Certified public accountant definition: A certified public accountant is a professional who has met state licensing requirements for CPA designation pertaining to accounting and finance.

Chatbot: A chatbot is a computer program or application that is designed to interact with users, typically over the internet.

Chief Executive Officer: A chief executive officer is the leader of a company or organization whose responsibilities include creating policies, crafting growth strategies, and overseeing the entire staff.

Chief Financial Officer: A chief financial officer (CFO) is a senior executive who manages the financial business and actions of a company.

Chief Human Resources Officer: A Chief Human Resources Officer is responsible for all human relations in a business including hiring, firing, and training.

Chief Investment Officer: A Chief Investment Officer is a senior-level executive who manages a company’s investment portfolios.

Chief Marketing Officer: A chief marketing officer (CMO) is a corporate executive responsible for overseeing all the marketing activities of a business. 

Chief Operations Officer: The Chief Operations Officer plays the role of vice president to the CEO and oversees all business operations. 

Classified Board of Directors: A classified board of directors is a board of directors that’s structured so that different board members serve for various lengths of time, based on their classification.

Close corporation definition: A close corporation is a shareholder-owned business that doesn’t trade or list its stock on the stock exchange.

Competitive Advantage: Competitive advantage is where a business’s goods or services are superior to or outperform the competition’s.

Compliance definition: Compliance means that your business conforms to all the applicable state requirements and has met all appropriate deadlines for your business to remain operational and in good standing.

Consideration: Consideration is what each party bargains for and what changes each party’s situation due to the contract. 

Consolidation: The definition of “consolidation” in business generally refers to combining different departments of a company into one larger unit or combining separate companies into one.

Constituent: A constituent only refers to the merging companies, never a parent company in a merger.

Content marketing definition: Content marketing is a way to increase sales by providing customers with relevant and valuable information.

Conversion: Conversion, as it pertains to owning and operating a small business, relates to the conversion of leads into customers. 

Copyright: It’s simply the right to copy. A person who owns the copyright to a piece of intellectual property is the only person who can copy or give permission to copy it.

Corporate Charter: A corporate charter is the document you file with the state to legally create your business.

Corporate Income Tax: Corporate income tax is a tax paid by corporations on their business income.

Corporate Indicator: A corporate indicator is a word or abbreviation in a company name that reflects its legal status.

Corporate Kit: A Corporate Kit is a binder that organizes all your corporate documents in one place and looks professional during meetings.

Corporate resolution definition: A corporate resolution is an agreement between agents or owners of a corporation to take on significant projects, make important decisions, or engage in certain activities.

Corporate Seal:  A corporate seal is a unique symbol that represents your company, and signifies that a corporate action is valid.

Corporation definition: A corporation is a legal entity that is separate from its owners. A corporation can be considered a “legal person” under the law, meaning it can possess the rights and responsibilities of an individual.

Creditor: Creditors are people or businesses that allow others to borrow money to be repaid in the future.

D

DBA definition: A DBA name is a legal form required whenever a company operates under a name that’s different from its officially registered name. 

Debt Financing: Debt financing is used by many small businesses when they need to raise money for working capital or asset purchases. Here’s a definition of debt financing and the advantages and disadvantages of using it.

Debtor: A debtor is a borrower who is liable to pay a defined sum to a creditor.

Deed of Trust: A deed of trust is a particular type of legal document frequently used in financed real estate transactions. 

Depression: A depression is an extended time of economic downturn characterized by widespread unemployment and market declines.

Director: A company director is responsible for the day-to-day operations of a company including the business and financial operations and oversight of other employees. 

Dissolution definition: Dissolution is the official closure of a business entity with the state. You likely need to file documentation with the state to make this official.

Dissolution definition: To dissolve refers to separating something into its component parts or bringing something to an end.

Distribution: A distribution in business means a disbursement of assets from a fund, account, or individual security to an investor or individual beneficiary.

Diversification: Diversification is an investment strategy that minimizes risk by investing across asset classes and markets.

Dividend: Payments made to shareholders and are a way to share profits with investors. 

Domain name definition: A domain name is a website’s “name.” These names can help your business find additional success.

Domestication: Domestication involves moving a legal organization from its state of origin to a new state.

Downsizing: Downsizing occurs when businesses fire a significant amount of employees to reduce costs and improve profits.

E

eCommerce: The act of selling goods or services online. If you sell through your own company website, eBay, Amazon, or on any other digital platform, you’re engaging in eCommerce.

What is an EIN: An EIN is a unique, nine-digit number used to identify a business entity. This identifier is very similar to a Social Security Number (SSN), but for businesses rather than individuals. 

Employment Agreement: An employment agreement is a formal agreement that spells out the rules of engagement between an employee and an employer.

Entity type definition: An entity type is the legal structure of your business.

Entrepreneur: Being an entrepreneur is exciting. It involves creating or offering products and services that the public may have never seen before. However, you’ll need a go-getter mentality and lots of grit to be successful (not to mention product research, funding, etc.).

Equity Financing: Equity financing allows a company to raise money by selling shares of the business to investors.

Expense:  An expense is the cost that a business owner incurs to operate the company. 

F

Family Limited Partnerships: A family limited partnership is a business partnership where the partners are family members.

Fictitious Business Name: A fictitious business name is a name, other than the registered name of the business, that the state gives you permission to use when conducting business. 

Fiduciary Duty: A fiduciary duty is a special type of legal obligation that one party owes to another.

Financial Management: Financial management is the term used to describe how a business tracks, manages, and assesses its overall financial situation. 

Financial projections definition: Financial projections are a tool business owners use to evaluate their future financial conditions and profits.

Fiscal Year: A fiscal year is a 12-month period that businesses, governments, and other entities use for accounting purposes, financial reporting, and creating and tracking budgets.

Fixed Costs: Fixed costs are the costs that remain the same during a period of time, regardless of production amounts.

Forecasting: Forecasting is the process of predicting or estimating future performance of a business based on historical financial data.

Form 1023: Form 1023 is a tax form that non-profit organizations file to get exemption status.

Form 2553: Form 2553 is the document that you file with the Internal Revenue Service (IRS) if you want to elect an S corporation tax status.

Form 8832: Form 8832 is what certain businesses use to tell the IRS how to classify them for federal tax purposes.

Fractional Share: A fractional share represents owning less than a whole share of stock in a corporation.

Franchise tax definition: A franchise tax is a tax paid by certain businesses for the right to operate or form in a particular state.

Freelancer definition: A freelance worker is someone who provides on-demand work to other businesses or individuals.

G

General corporation definition: A general corporation is a legal entity owned by shareholders, managed by a board of directors, and run by officers.

Going Public: Going public refers to when a company undertakes its initial public offering by selling shares of its stock to the public for the first time.

Golden Parachute: Golden parachutes are lucrative benefit packages memorialized into contracts for top corporate executives.

Good Faith: Good faith describes honesty and fairness in someone’s conduct during the course of a contractual relationship. 

Guarantor: A guarantor is a person who guarantees something for someone else. In the financial world, the guarantor definition is a person or entity who promises to pay for something on another person’s behalf if that person doesn’t.

H

Holding Company: A holding company is a legal entity used for running multiple companies while limiting financial and legal liability.

Human resources definition: A business’s human resources department helps that business fulfill many of its obligations and manage the relationships between the business and its employees.

I

Income Tax: Income tax is a tax you pay to the government based on the amount of income you make.

Incorporated Business: An incorporated business is one that the government recognizes as a legal entity separate from its owners.

Incorporation definition: The formation of a new corporation, which is a legal entity formally recognized by the state it’s located in.

Incorporator definition: An incorporator is an individual responsible for setting up a corporation and registering formal documents with the state where the company will be conducting business. 

Incorporators Statement: A written document that sets up the traditional “board of directors” structure within the corporation.

Indemnification: Indemnification is a clause in a contract where one party agrees to compensate another party if something happens to a third party. 

Independent contractor definition: An independent contractor is a person or business that provides goods or services under a written contract or verbal agreement.

Injunction: An injunction is a court order that commands a person to either do or refrain from doing a specific act.

IPO: An IPO (initial public offering) is when a company first sells shares of its stock to the public.

IRS definition: Business owners should know what the IRS is and how it works. They will need to be familiar with how their business will be taxed.

J

Jurat: A jurat is a certificate added to an affidavit stating when, before whom, and where it was made.

L

Liability: Businesses have many kinds of liabilities. They include long- and short-term debt as well as potential legal liabilities incurred when operating the business.

Limited Liability Partnership: A limited liability partnership is a type of business entity structure with at least two partners. A distinguishing characteristic of an LLP is limited personal liability, which can be extremely beneficial in running a business.

Limited Liability Company (LLC): An LLC is a legal business entity that provides limited liability protection, meaning that the owners are usually protected from the business’s liabilities and debts.

limited partnership definition: A limited partnership is made up of at least two people. One is the general partner and this person oversees business operations. The others are known as limited partners and their responsibilities don’t involve the business’s management.

Limited Personal Liability: Limited personal liability is when someone’s liability is limited to a set amount, like how much they invested in their business.

Lines of credit definition: A line of credit is a loan that operates like a credit card. You have a certain amount to draw from and use only as much as you need.

M

Management: An LLC’s or corporation’s management is responsible for making day-to-day decisions to run the business.

Manager: A manager is the person in charge of a business’s day-to-day operations.

Manager-Managed: Manager-managed is the structure where members elect a manager or a small group of managers to handle the daily operations of the LLC.

Market Correction: A market correction is a dip of more than 10 percent from an asset’s highest price.

Member: A member is an individual or entity holding a membership interest in a limited liability company (LLC). 

Merger: A merger is when two or more companies merge into one company or combine their assets.

MERP: MERPs are a cutting-edge health insurance plan that offers flexibility and favorable tax treatment to employers and employees alike. 

Model Registered Agents Act: It creates two different types of registered agents, which it refers to as commercial and noncommercial.

Multi-Member LLC: A multi-member LLC is a statutory business structure with limited liability and flexibility.

N

Name Registration: A name registration is the name you use when registering your business with the state.

Name reservation definition: A name reservation means that your business name is saved for your exclusive use for a defined period.

No Par Value Shares: No par value shares are stocks issued without a par value listed on the face of the certificate.

Notice of Litigation: A Notice of Litigation is a legal document that informs the recipient of an impending lawsuit.

O

Operating agreement definition: An operating agreement is a document that clearly outlines an LLC’s rules and structure.

Outsourcing definition: When one company hires another company or person to handle projects.

P

Par Value: Par value refers to a security’s value as stated in a company’s corporate charter.

Partner definition: A partner is an individual who formally agrees to jointly manage and operate a business with someone else. 

Partnership agreement definition: A partnership agreement is a contract that governs how a small business runs its internal affairs.

Pass-through taxation definition: Pass-through taxation is a tax treatment that allows all income, losses, credits, and deductions of a business to pass through to the owner or owners.

Patent: A patent is a type of intellectual property granted to an inventor to help protect their invention from being made or sold by competitors.

Perpetual Existence: Perpetual existence means that a company can remain a legal entity perpetually regardless of a change in ownership.

Preferred Stock: Preferred stock is considered an equity security and it includes features of both common stocks and bonds.

President: A president is a leader in a company’s executive branch. 

Professional Association: A professional association is an organization that benefits people working in a particular industry.

Professional corporation definition: A professional corporation is a corporation in which only individuals with state licenses to practice the same profession can own shares of the business.

Professional LLC: A professional limited liability company is an LLC with members who are licensed to provide specific professional services.

Promissory Note: A promissory note is a legally binding agreement between a borrower and a lender.

Promoter: A promoter is a person or a business responsible for financing or acquiring financing for a project or investment activity.

Property Tax: Property tax is a tax levied on property that an individual or legal entity owns.

Proxy: In corporate terminology, a proxy is an agent who attends a corporation’s shareholder meeting and votes for a shareholder who couldn’t attend in person.

Public benefit corporation definition: A public benefit corporation is a for-profit corporation whose purpose is to provide a benefit to society (such as improving the environment or promoting good health) in addition to making a profit for shareholders.

Punitive Damages: Punitive damages are a category of damages a plaintiff can seek against a defendant in a civil lawsuit.

Q

Quorum:  A quorum is the minimum number of voting members that need to attend a meeting for the meeting to be effective.

R

Receiver: A receiver is a person appointed to care for your business when you need help managing your credit, property, assets, or operations.

Recession: A recession is a significant decline in economic activity in a given region that lasts for an extended period of time.

Recession-Proof: Recession-proof means a business can maintain its value during an economic downturn.

Record Date: A record date is the cut-off date established by a corporation’s board of directors to determine which shareholders are eligible to receive a dividend or distribution.

Registered Agent (For more information, please see our what is a registered agent page): A registered agent is a person or entity that serves as a business’s legal point of contact. 

Regulations: Regulations are authoritative rule[s] dealing with details or procedures for businesses.

Reinstated Articles of Incorporation: Restated Articles of Incorporation is a business document that combines a corporation’s Articles of Incorporation with any amendments on file. 

Reinstatement: Reinstatement is the process of having your business go from being in bad standing to being in good standing with the government. 

Resolution: A corporate resolution is a legal document detailing and confirming a formal decision made by the board of directors.

Respondeat Superior: A Respondeat Superior is a doctrine that holds an employer legally and financially accountable for injuries and property damage caused by its employees while they are working.   

Retained Earnings: Retained earnings are a company’s earnings that remain in the business after paying shareholder dividends.

Rights of First Refusal: A contract containing a right of first refusal gives the holder the right to purchase an asset or enter into a business contract before anyone else. 

S

S Corporation (S Corp) (please see our What is an S Corp? page): An S corp is a tax classification. The “S” refers to Subchapter S of the Internal Revenue Code. LLCs and C corporations (the default form of corporation) can apply to be taxed as an S corp if they meet the IRS’s criteria. 

S Election: An S election offers a lower tax rate on distributions and no income taxes at the corporate level.

Sales tax definition: Sales taxes are taxes state and local governments levy on the consumer for goods and services. Retailers collect sales taxes and remit them to the government. 

Secretary of State: The Secretary of State is the chief clerk for the government who’s responsible for important state records, including business documentation. 

Securities Laws: Securities laws are the laws, rules, and regulations governing the purchase and sales of securities.

Security definition: Securities are tradable financial instruments used to raise capital in public and private markets.

Self-Directed IRA: A self-directed IRA entails retirement accounts that you, as the account holder, manage.

Series LLC: A Series LLC involves forming a parent LLC and then designating separate series entities under the parent.

Service of process definition: Service of process relates to a legal procedure that officially notifies an individual or business that a legal action has been taken against it. 

Share: A share is a unit of ownership of a corporation. When a corporation is created, the creators of the business will issue a certain amount of shares or ownership units in the company.

Shareholder Agreement: A shareholder agreement is a legally binding contract among shareholders that outlines how the company will operate and defines the shareholders’ rights, protections, and obligations.

Single-Member LLC: A single-member LLC is a type of limited liability company that has only one owner, referred to as a member. 

Small business administration definition: The Small Business Administration is a federal government agency that provides resources to small businesses.

Sole Proprietor: A sole proprietorship is an unincorporated business that has only one owner. Sole proprietors are required to pay personal income taxes on any profits that the business earns. For more information please see: What is a Sole Proprietorship?

Startup costs definition: Startup costs are what you’ll spend to create or investigate opening a new business or trade. 

Statement of information definition: A statement of information is a document that keeps the state informed about your business’s important registration information.

Statutes: Statutes are acts of a corporation or of its founder intended as permanent rules.

Stock: Stocks are a type of security that indicates an ownership interest in a company. They are used to help a company grow. Corporations issue stock to help a company grow and to fund all kinds of business purposes and operations.

Stock Certificate: A stock certificate is a physical piece of paper that represents a shareholder’s ownership in a company.

Statutory Agent: A statutory agent is an individual or legal entity appointed to accept service of process on a company’s behalf.

Subscription Business Model: A subscription business model is founded on the idea of selling a product or service to receive automatic recurring revenue. 

Subsidiary: A subsidiary is a company owned by another company, called a parent company or holding company.

T

Takeover: A takeover is when one company assumes control of another company.

Tax Elections: Tax elections are selections regarding tax treatment where the taxpayer elects how they want the Internal Revenue Service (IRS) and state taxing agency to tax their income.

Tax Shelter: Tax shelters are legal strategies that can decrease or defer your tax liability. They come in a variety of different forms and methods and can offer significant benefits if used properly.

Tort: A tort is a wrongful act or omission that harms another person, resulting in civil legal liability.

Treasurer: A treasurer is the person in charge of managing and accounting for funds within a business organization. 

U

Underwriter: Underwriters are a part of the business loan and business insurance process. They can help approve applications based on several factors.

V

Venture Capital: Venture Capital, by definition, is start-up money you receive from an investor in exchange for giving that investor a piece of your business.

Voluntary Dissolution: Voluntary dissolution involves closing your business on your terms with the shareholders’ or owners’ approval.

Voting Rights: Voting rights are the rights of shareholders to make decisions about the company.

W

Website definition: A website is a collection of digital pages on the World Wide Web and accessible through the internet.

Winding Up: Winding up is one step in dissolution, where the owners work to “wind up” the business operations.

Working capital definition: Working capital equals your company’s assets minus your company’s liabilities.

Recommended article: Glossary of Business Terms for Entrepreneurs