Revenue is generally recognized when the transfer of ownership or title occurs. For goods, this happens at the Point of Sale. There are, however, scenarios in which revenue is recognized as a later point.

Methods of Perfecting a Security Interest in Personal Property

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...

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...

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...

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...

Business Entities (Intro)

Business activities of all types are subject to law and regulation. This video explains what are business activities that are subject to or affected by law. More specifically, this video explains what is the legal environment of business?

This Video Explains Deeds and Transfer of Interest Explained

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...

This video explains the importance of considering compensation when selecting a business entity. It highlights how different types of entities have different rules regarding compensation for the owners or individuals working on behalf of...

This Video Explains Community Property vs Separate Property - Property Law

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...

Closely-held vs Publicly-held Business

Closely Held Corporation - Explained

Explanation of C - Corporations

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...

Does an Employer hold an Ownership Interest in an Employee's Business? Companies often hire and invest in employees to develop new products, improve processes, create new technologies and develop new markets. With this investment, it...

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,...

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.

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...

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.

How to Select the Appropriate Business Entity

General Partnership - Explained