The Business Professor
Founder's Stock
What are Founder's stock? Founder stock is equity ownership in a company that is granted to the company's founder or co-founders. It typically represents a direct ownership stake in the company and gives the founder voting rights and the...
The Business Professor
Equity Interest for Startup Advisors
When and how does a startup grant equity interests to startup advisors? When to Grant Equity. If the startup does decide to compensate its advisors with equity, it must decide how much equity to offer. This decision is generally based...
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
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
Contributing Intellectual Property for Equity
When do investors or founders contribute intellectual property to a startup in exchange for an ownership or equity interest? When the company is formed, the founders are typically issued common stock in the company in exchange for the...
The Business Professor
Common and Preferred Shares
What is the difference between Common shares and Preferred Shares? The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have...
The Business Professor
Choosing the Right Business Entity
How do you Choosie the Right Business Entity? When choosing a business entity, you should consider: (1) the degree to which your personal assets are at risk from liabilities arising from your business; (2) how to best pursue tax...
The Business Professor
Carveouts to Anti-Dilution Protections
Antidilution provisions protect investors from subsequent down rounds of investment. What are Carveouts to Anti-Dilution Protections? Anti-dilution provisions are clauses built into convertible preferred stocks to help shield investors...
The Business Professor
Capitalizing or Funding a New Business
What are the options for funding a New Business? How does funding affect the capital structure? Retained earnings, debt capital, and equity capital are three ways companies can raise capital. Using retained earnings means companies don't...
The Business Professor
Business Incubator
What is a Business Incubator? A business incubator is an organization that helps startup companies and individual entrepreneurs to develop their businesses by providing a fullscale range of services starting with management training and...
The Business Professor
Authorized Shares
What are Authorized Shares of a company? Authorized shares are the maximum number of shares a company is allowed to issue to investors as laid out in its articles of incorporation. Outstanding shares are the actual shares issued or sold...
The Business Professor
Steps in the Incorporation Process
What are the Steps in the Incorporation Process? Incorporation generally entails filing the articles of incorporation, naming a registered agent, and receiving the charter or certificate or incorporation.
The Business Professor
Special Employee Provisions - Term Sheet
What are the Special Employee Provisions in a Term Sheet? The parties often negotiate numerous employee-related provisions into the term sheet. These provisions serve as control mechanisms to either incentivize current management or...
The Business Professor
Participating Preferred Stock
What is Participating Preferred Stock? Participating preferred stock is preferred stock that provides a specific dividend that is paid before any dividends are paid to common stock holders, and that takes precedence over common stock in...
The Business Professor
LLC or Limited Liability Company - Explained
What is an LLC or Limited Liability Company? A Limited Liability Company (LLC) is a business structure allowed by state statute.
Curated Video
How Puerto Rico Became a US Commonwealth
Puerto Rico is part of the US, governed by federal law but unable to vote in Presidential elections.. So why does it remain in constitutional limbo?
Curated Video
Rebels in the Records: The Life and Legacy of Samuel Sharpe by Jemima
National Archives: This films is part of a series called ‘Rebels in the Records’. The films in the series were created by young people in July 2021 and combine puppetry, model-making and animation. They explore stories of people and...
Curated Video
There Their They're | Improve Your Grammar in Minutes
An explanation of the use of 'there', 'their' and 'they're' Learn how to use each correctly in your writing.
Curated Video
Linux Fundamentals - Changing Ownership of the File
This video demonstrates how to change the ownership of the file. This clip is from the chapter "User Management and Permissions in Linux" of the series "Linux Fundamentals".This section explains user management in Linux. After that, you...
Let's Tute
Introduction to Consignment Accounting: Basic Accounting Transactions of Consignment
Introduction to Consignment Accounting part 5/10: The video explains the basic accounting transactions of consignment, covering 10 common steps that are essential to understand. The teacher goes through each step, including sending...
Global Ethics Solutions
Care of Company Assets - Connecting Character (Part 2)
This is the second of a four-part course on respecting company assets. This section discusses the issues, myths, and problems of property rights as well as how our personal attitudes and character affects our ability to respect company...
The Business Professor
Considerations for Business Entity Selection: Importance of Ownership Structure
The video explains the importance of considering ownership structure when selecting a business entity. The speaker discusses how ownership relates to control and how each type of entity has a unique internal structure for how ownership...
The Business Professor
Methods of Perfecting a Security Interest in Personal Property
Methods of Perfecting a Security Interest in Personal Property