What is Review Under the Federal Arbitration Act? In cases involving federal matters, the Federal Administration Act controls the procedures. The procedures of the FAA are binding upon both state and federal courts when called upon to review an arbitration.  What is the Review Procedure Under the Federal Arbitration Act? Once an award is entered by ...

What are Stock Redemption Rights? Redemption occurs when the company repurchases shares from the company's equity holders. Redemption rights are the rights of the shareholder to force the company to repurchase shares. Redemption rights are generally either mandatory or optional. Example: Unless prohibited by Delaware law governing distributions to s...

What is Division of Labor? Division of labor concerns dividing the production of a good or service into a number of tasks that different workers perform, instead of all the tasks being done by the same person. Who Introduced the Concept of Division of Labor?  Adam Smith (1723–1790) published his famous book The Wealth of Nations  in 1776 introduced ...

What is a Pathfinder Prospectus? A pathfinder prospectus refers to a preliminary prospectus that contains the statement of the financial status of a company that is going to be launched on an exchange or that will go through an IPO filing. A pathfinder prospectus is produced by the issuing company and sent to a group on underwriters and institutiona...

Why International Marketing Research is Difficult? Notable difficulties in International Marketing include:  Customer Understanding Language Issues Technical issues Cultural Issues Each of these is discussed below.  Customer Understanding  In particular trying to understand the customer or the consumers in an international market. Often, we have to ...

What are the Six Leadership Styles? Goleman,Boyatzis and McKee (2002),  introduces six leadership styles. To properly understand the six leadership styles based upon the human communication / interaction concept of resonance. Good leaders are effective because they create resonance. What is Resonance?  Resonance comes from the Latin word resonare. A...

What is the Experience Curve? The experience curve, also known as Henderson's law, is an economic model stating that the more a firm produces of a particular good or service, the more it gains in efficiency. Thus, the cost of production decreases in proportion to the volume of products produced.  Who Created the Experience Curve? Bruce D. Henderson ...

What is a Drop Shipment? It is a supply-chain-management method where the retailer takes orders from the customer and processes it to the manufacturer or original supplier with the order and shipment details. Then, the manufacturer or the original supplier directly sends it to the customer. In this method, the products directly reach the customer wi...

What are the primary business valuation methods? Valuation methods are particularly important in startup ventures, as valuation affects the interest of potential investors and reflects the expectations of the firms future performance. Equity investors in startup ventures seek a return on their investment via a future exit event. Examples of exit eve...

What is Royalty-Based Financing? Investing in a business on the condition of receiving a percentage of the ongoing operating profits, until the principal investment and an additional prefixed cap is recovered, is called Royalty Based Financing (RBF), or Revenue Based Financing. RBF cycles may last from 2 to 5 years. How Does Royalty-Based Financing ...