What is a Prospectus? A legal document in accordance with Securities and Exchange Commission (SEC) guidelines, provided to investors before the issuing of securities - stocks or mutual funds, is called a Prospectus. It includes details about the issuing firms financial and operational data, information on major stakeholders, details about the number...

What is Discovery in a Civil Lawsuit? Discovery is the process of identifying and obtaining any information or evidence that is relevant and material to the dispute.  How is Discovery used in a Civil Trial? Discovery is the process of identifying and obtaining any information or evidence that is relevant and material to the dispute.  The rules of pr...

What is a Sunk Cost? A sunk cost is the money that has already been spent and cannot be retrieved. Traditional microeconomics theory proposes the sunk cost should not influence an investment decision as it is already gone, and the cost will remain the same irrespective of the outcome of the decision. Only the prospective or future cost should be con...

What is a Standard Deduction? Standard deduction refers to the amount of income that can be subtracted before the income tax is applied. The Internal Revenue Service (IRS) standard deduction is the portion is in an individual's income that is not taxable. This is a deduction or tax credit under the United States tax law in which non-itemizers are pe...

What is the Crime of Obstruction of Justice? Obstruction of justice is an intentional act carried out with the intent to obstruct the legislative or judicial process. This charge seeks to protect legislative, judicial, and administrative proceedings. Related Topics Criminal Law (Intro) What is Criminal Law? What are the elements of a crime? Classifi...

What is the Accounting Standards Board (ASB)? The Accounting Standards Board (ASB) is a former organization that was responsible for drafting and issuing accounting standards in the United Kingdom. The ASB was located in London, England and was similar in function to the Financial Accounting Standards Board (FASB) of the United States. The ASB was s...

What is an Absolute Performance Standard? An absolute performance standard refers to a gauge used in evaluating the performance of businesses and employees. It serves as a model standard and seeks to measure how well an organization is performing and how employees are also faring working towards the goals of the organization. Standards should also b...

How is a civil trial decided? At the conclusion of all evidence and arguments, the judge instructs the jury on the applicable law to apply to the facts. The jury will use this law when deliberating to determine liability. Once liability is determined, the judge will issue a judgment affecting the jury's verdict. The full process is discussed below. ...

What is the Accounting Equation? Assets = Liabilities + Equity The accounting equation, also known as the fundamental accounting equation or a balance sheet equation, is a principle of accounting that establishes a correlation between assets, liabilities and equity of an individual or a business entity.  An accounting equation is a principal compone...

What are Intended, Deliberate, Realized, and Emergent Strategies? Henry Mintzberg and his colleagues at McGill University distinguish intended, deliberate, realized, and emergent strategies.  Note: This framework has given rise to two factions - the Design School and Emergence or Learning Schools of Strategy. Though, Mintzberg acknowledges that the ...