The Business Professor
Payroll taxes
Payroll taxes are taxes created by the federal income contributions act or FICA. Payroll taxes are an obligation shared by employers and employees to fund Social Security and Medicare programs. An employer withholds FICA taxes from an...
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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...
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Option Pools & Capitalization
What are Option Pools? How do Option Pools affect company capitalization? An option pool allows startups to budget out how much equity they will reserve for hires between each funding round. Without an option pool, employee equity would...
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Marketing Plan: Goals and Objectives Section
This Video Explains Marketing Plans: Goals and Objectives Section
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Percent of Sales Method - Accounts Receivable
Percent of Sales Method - Accounts Receivable
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Percent of Receivables Method (Balance Sheet Method) - AR
Percent of Receivables Method (Balance Sheet Method) - AR
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Understanding Normal Costing and its Relationship to Overhead Allocation
In this video, the concept of normal costing is explained as a means of allocating costs to a product, specifically focusing on overhead costs. The speaker discusses how a derived overhead rate is determined based on the driver of an...
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Marketing Plan Situational Analysis
This Video Explains Marketing Plan Situational Analysis
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Real Estate Taxes
Real estate taxes are generally taxes assessed against the value of one's real estate or taxation of gains from the sale or disposition of real estate. This video explains what is property taxation in both of these instances.
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Preemptive Rights - Preferred Shares
What are Preemptive rights for preferred shareholders? Preemptive rights give a shareholder the option to buy additional shares of the company before they are sold on a public exchange. They are often called "anti-dilution rights"...
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Stock Vesting Schedule
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...
The Business Professor
Revenue Recognition Across Industries
Business employ various approaches to revenue recognition. Any revenue recognition method must be in accordance with ASC 606 which provides steps for determining when revenue should be recognized.
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Understanding Material Variance and its Importance in Operations
This video provides an explanation of material variance and its different types. Material variance refers to the variation in material use during an operational process. The video discusses four types of material variance: material cost...
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Venture Capital Method - Business Valuation
What is the Venture Capital method of business valuation? “Venture Capital Method” for determining a company's valuatio involves multiplying the company's projected revenue with its projected margin and industry price-to-earnings to...
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Term Sheet Provisions
What are Term Sheets? What are the primary term sheet provisions? A term sheet often covers four main categories: the deal economics, the investor rights, the governance and oversight, and the exit terms. A term sheet must communicate...
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Ch7. Video 9 - Percent of Receivables example
Percent of Receivables (Accounting) example
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Ch7. Video 7 - Percent of Sales example
Percent of Sales (Accounting) example
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Computing tax credits
Tax credits reduce the liability of a taxpayer. That is, it reduces the amount of taxes owed. This is different than a deduction, which reduces the taxable income of a taxpayer.
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Common Size Analysis
Common size analysis is used to compare financial performance of two different companies or units. It is used to put the compared organizations on the same footing for comparison.