board of directors

Tag: board of directors

Audit Committee

An audit committee is a subcommittee of a public company’s Board of Directors. Furthermore, a Board of Directors can have several subcommittees. The committee focuses on corporate governance, specifically, the company’s internal controls and financial accounting systems. Audit Committee Membership A company’s committee typically includes a number of outside directors, or non-executive directors. In addition, a

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General Counsel on the Board

See Also: Ten In-House Secrets for Reducing Your Company’s Legal Costs Red Herring Board of Directors Benefits of an Advisory Board How to Form an Advisory Board General Counsel on the Board It was once far more common for Boards of Directors to include a lawyer who doubled as general counsel. Some boards still engage

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Dividends

See Also: Dividend Yield Capital Impairment Rule Dividend Payout Ratio Financial Ratios Dividends Explained Dividends are corporate profits distributed to shareholders. When a company makes a profit, the board of directors can decide whether to reinvest the profits in the company or to pay out a portion of the profits to shareholders as a dividend

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Common Stock Definition

See Also: Intrinsic Value – Stock Options Company Valuation Basis Definition Balance Sheet Paid in Capital (APIC) Capital Gains American Depositary Receipts (ADRs) Common Stock Definition The common stock definition is shares of common stock represent ownership of a public or private corporation. Shares of common stock usually give the shareholder voting rights. Therefore, the

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C Corporation

See Also: S Corporation Limited Liability Limited Partnership (LLLP) Cooperative (co-op) Limited Liability Company (LLC) Sole Proprietorship S Corporation vs C Corporation Conglomerate Definition C Corporation Definition The C Corporation definition (C-corp) is a form of business which is owned by several C-corp shareholders or holders of stock within the company. Many larger businesses adopt

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What is a Board of Directors?

See Also: Ten In-House Secrets for Reducing Your Company’s Legal Costs Red Herring Benefits of an Advisory Board How to Form an Advisory Board Advisory Board Best Practices What is a Board of Directors? The board of directors is an essential part of business, what is a board of directors? The board of directors is

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Benefits of Advisory Boards

Advisory Board Definition The definition of an advisory board is a group of business executives who meet on a consistent basis to provide leadership, support and constructive feedback to the executive leadership of a company. Furthermore, an advisory board’s purpose is to assist you in leading your company. But unlike a traditional board of directors

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Adjusted Present Value Example

See Also: Adjusted Present Value (APV) Adjusted Present Value Example Joey owns a small chemical plant called Chemco. Chemco, despite the effects of the recent recession, is doing fine. They are doing so well, in fact, that they have excess cash. Chemco decides to look for a suitable investment for the free cash flow of

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Agency Costs

See Also: Are You Collecting the Data You Need to Run Your Business? Average Cost Sunk Costs Restructuring Expense Joint Costs Commercial Agents Agency Costs Definition The agency costs definition is the internal costs incurred from asymmetric information or conflicts of interest between principals and agents in an organization. In a corporation, the principals would be

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Activity Based Cost Allocation

See Also: Implementing Activity Based Costing Activity Based Cost Allocation Let’s dig into activity based cost allocation. But first, we need to note that not all the allocation methods are based on the “cause and effect” concept. This is important because CEOs and other managers need to know what the real cost of a product

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