Entity

Several theories were derived from the Modigliani and Miller (MM) theory. The MM theory was created in a utopian world for corporations, with no taxes, no bankruptcy or brokerage costs, and no impacts by the use of debt, to name a few assumptions the MM theory made. Although the MM theory is unrealistic, it helped firms apply and change the different assumptions to determine which capital structure was the best for the firm, and how these assumptions would impact the firm. The Trade-Off Theory…

These startup mistakes can mean the death of your business before it even gets off the ground. Avoid them at all costs, and make sure you get sound legal advice at the beginning even if it makes a dent in the budget. 1. Prior Employer 's Workplace When starting their own company, many startups might work at their employer 's facility or on their employer 's computers. If you work in an industry that has intellectual property rights, and you signed an agreement when you started at your job,…

5 Differences and 5 similarities between Acquisition & Merger Differences Between Merger and Acquisition The focuses introduced beneath clarify the generous contrasts amongst merger and acquisition in a point by point way: • A sort of corporate system in which two organizations amalgamate to frame another organization is known as Merger. A corporate system, in which one organization buys another organization and pick up control over it, is known as Acquisition. • In the merger, the two…

Every state has workers compensation laws designed to compensate employees for work related injuries. In some states it may be called workman's compensation or workmen's compensation, but it is the same thing. While specific workers comp laws and systems vary from state to state, there are general principles applicable to all states. Here are 5 facts the everybody ought to know. 1. Not every employer is required to have workers compensation. Every state has set a minimum number of employees…

of their operations. The differences between mergers and acquisition relate mainly to the relative size, management control and ownership of the combined business. Mergers is defined as two separate companies pooling their resources into a single entity and become common shareholders. The shareholders of pre-merger companies have a shared in the ownership of the merged business. In contrast, acquisition is defined as where a company or party makes an offer to acquire all the shares or acquire…

Case Activities 3 Discharge in Bankruptcy In this case, Joseph Harman, the president of Carter Oaks Crossing was loaned $400,000 by Caroline McAfee. Harman signed a promissory note that specified the company would repay the amount of the loan with interest in installments in which the installments would begin in 1999 and end in 2006. Harman signed a personal guaranty with the promissory note. Carter Oaks Crossing eventually defaulted on the note causing McAfee to sue Harman for payment under…

“Man is an animal that makes bargains (or exchanges): no other animal does this - no dog exchanges bones with another”. (Smith, A. (n.d.) Whether man is an animal or better described as a creature, notwithstanding, it can easily be said, even taken as an axiom that humans are actors in the economy. Even Robinson Crusoe on his little island maybe described as an economic actor in so far as he is motivated to behave based on factors such as scarcity, choice and cost. It has been said that “man…

2.0 Common stock valuation Common stock represents ownership of the corporation. So the common stockholders are the owners of the firm. They elect the firm’s board of directors, who in turn appoint the firm’s top management team. The firm’s management team then carries out the day-to-day management of the firm. Characteristics of common stock Does not have maturity date, but exist as long as the firm’s does. Nor does common stock have an upper and lower limit on its dividend payments.…

1. The name cannot be the same as an existing LLC in your state.1 2. The name must specify that your organization is an LLC (ex: "LLC" or Limited Company").1 3. The name cannot contain words prohibited by your state (ex: "bank" or "insurance").1 B. What state licenses & permits are needed & which state agencies do you need to register with? 1. File Articles of Organization with the South Carolina Secretary of State’s Office.2 2. Register with the South Carolina Department of Revenue (SCDOR) for…

For the Love of COFFEE! Business is all around us. When we go to the store we make transactions, when a business is going strong they are making profit, when a business it just being created it’s called a start-up. Business is not only a part of a lifestyle to other’s it is their life. It gives entrepreneurs a way to express themselves through their ideas. A way to see what they’ve created through their hard work to see what they’re worth. An entrepreneur is a person who takes the risk of…