In this video, we delve into the concepts of payback and accounting rate of return, two important metrics used in evaluating investment projects. The teacher explains the non-discounted and discounted models of payback, highlighting the...

What are Registration Rights in a Term Sheet? A registration right is a right entitling an investor who owns restricted stock to require that a company list the shares publicly so that the investor can sell them. Registration rights, if...

Purchase Money Grace Period for Secured Parties

What are Promissory Notes? A promissory note, sometimes referred to as a note payable, is a legal instrument, in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future...

Product costing changes based upon the stage of manufacturing in which the cost is incurred. This video explains the various stages of manufacturing used in product costing.

This Video Explains Process for Creating Administrative Regulations

Process costing concerns assigning the cost of produciton of a product on a per unit basis to a specific period. There are multiple steps in the process and means of allocating costs.

What is present value and how is the discounted cash flow model used to determine the present value of future cash flows.

What is a Stock Vesting Schedule? A vesting schedule is an incentive program for employees that gives them benefits, usually stock options, when they have contractually fulfilled a specified term of employment with the company. The...

Staggered Voting in a Corporation

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...

Section 4 - Securities Exemption

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.

What is the Window of Opportunity? How does the window of opportunity relate to exploiting an entrepreneurial opportunity? The "window of opportunity" states the accurate time for a firm to enter into a new market and grab an opportunity...

Chapter 11 Bankruptcy Process

Companies often employ differing policies concerning whether to capitalize the purchase of assets or expense the purchase in a given year. This video explains the effects of a capitalization policy on the financial statements.

Defenses to a Claim of Copyright Infringement

How should you structure Compensation within a Startup? How much debt should the company incur? How much equity should the company sell? This may include incentives on top of a base salary, so that your employees do well financially as...

Closing Process - Financial Accounting

A contract warranty is an assurance that certain representations will remain true for a certain period of time. This video goes further to explain what is an express warranty in a contract?

In this video, the speaker discusses exceptions to the requirement of consideration in enforceable contracts. These exceptions include detrimental reliance or promissory estoppel, agreements to pay existing debts, reaffirmation of...

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,...

Employee Retirement Income Security Act ( ERISA)

This video provides an overview of the Electronic Funds Transfer Act and its implications for consumers. It outlines the procedures in place to protect consumers, including reporting requirements and liability limits based on the timing...