The Business Professor
Employee Stock Option Plans (ESOP)
What is an Employee Stock Option Plan? Employee stock ownership, or employee share ownership, is where a company's employees own shares in that company. US employees typically acquire shares through a share option plan. In the UK,...
The Business Professor
Drag-Along Rights - Term Sheet
What are Drag-Along Rights in a Term Sheet? Drag-along rights, on the other hand, are control provisions that can protect against minority shareholders holding up a deal for the sale of the company. Specifically, it requires a...
The Business Professor
Dividing Ownership Among Founders
How do you divide the ownership interest of a startup among the founders? Harvard Business Review found that the percentage of founders who express unhappiness with their equity split increases 2.5x as their startups mature.
The Business Professor
Dividend Rights of Preferred Shareholders
What are Dividend Rights of Preferred Shareholders? Preferred dividends refer to the cash dividends that a company pays out to its preferred shareholders. One benefit of preferred stock is that it typically pays higher dividend rates...
The Business Professor
Distinctiveness Requirement for Trademarks
Distinctiveness Requirement for Trademarks
The Business Professor
Discount Future Cash Flows - Business Valuation
What is the Discount Future Cash Flows Method of Business Valuation? Discounted cash flow (DCF) is a method of valuation used to determine the value of an investment based on its return in the future–called future cash flows. DCF helps...
The Business Professor
Crucial Success Factors - Management
What are Crucial Success Factors in Management? Critical success factor is a management term for an element that is necessary for an organization or project to achieve its mission. To achieve their goals they need to be aware of each key...
The Business Professor
Crowdfunding - Explained
What is Crowdfunding? Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, typically via the internet. Crowdfunding is a form of crowdsourcing and alternative finance.
The Business Professor
Cost Volume Profit Analysis - Cost Structuring
Cost structuringis a key assumption when conducting a Cost Volume Profit Analysis. This video explains the relevance of this assumption.
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Economic Value Added - Business Valuation
What is the Economic Value Added Method of business valuation? EVA is the incremental difference in the rate of return (RoR) over a company's cost of capital. Essentially, it is used to measure the value a company generates from funds...
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Earning Capitalization Method - Business Valuation
What is the Earnings Capitalization Method of Business Valuation? The capitalized earnings method consists of calculating the value of a company by discounting future profits with a capitalization rate adjusted to the determining date...
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Economic Events Affecting Shareholder Equity
There are numerous transactions or economic events that will have an effect on a shareholder's equity. This video identifies the various factors that will have an effect on shareholder equity.
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Shareholder's Equity
This video provides a clear and concise description of shareholders equity, explaining its formation, components, and how it is recorded in the company's financial statements.
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Disclosure Requirements of Regulation D - Securities Exemption
Disclosure Requirements of Regulation D - Securities Exemption
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Differentiation Strategy
Your differentiation strategy is the way in which you make your firm stand out from otherwise similar competitors in the marketplace.
The Business Professor
Internal Controls - Financial Accounting
Internal Controls - Financial Accounting
The Business Professor
Internal and External Factor Evaluation Matrix
The IFE is focused on the internal dimension of the organization by looking at the strengths and weaknesses. While the EFE is concerned with the external factors by focusing on the opportunities and threats the organization is exposed to.
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Inorganic Growth
What is Inorganic Growth in a business venture? Inorganic growth is growth from buying other businesses or opening new locations. Meanwhile, organic growth is internal growth the company sees from its operations, often measured by...
The Business Professor
Initial Actions by the Board of Directors
What are the Initial Actions by the Board of Directors? The initial board consent should include a separate paragraph to address the issuance of stock to the initial shareholders of the company.