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 ...

Who are the Parties to a Lawsuit? A lawsuit involves (or may involve) the following parties and situations: Plaintiff Defendant Counterclaims Third-Party Defendants Each of these situations is explained below. Who is a Plaintiff in a Civil Action? The plaintiff is the party (individual or business) who files the action claiming that she has suffered...

What is the The Cognitive School of Strategy? The Cognitive School focuses on the creative processes that take place in the mind of the strategist. It is very individualistic, in that that strategist creates a strategy based upon her personal knowledge, experiences, and perceptions.  Under this perspective, understanding the human mind and the human...

What is the Bankruptcy Abuse Prevention And Consumer Protection Act (BAPCPA)? Bankruptcy abuse prevention and consumer protection act, also known by the acronym BAPCPA, refers to legislation that made a significant revision to the United States Bankruptcy Code. BAPCPA was passed by Congress in April 2005 and signed into law by President George W. Bu...

What is the significance of alternatives in negotiation? Parties negotiate in order to achieve a better result than they would be able to achieve independently of negotiating (or as an alternative to negotiating). A party may have any number of alternatives to those achievable through negotiation. The nature and extent of the alternatives available ...

What are Normalized Financial Statements? The non-recurring expenses and revenues of a company are adjusted to get a real picture of the company's financial performance. This adjusted financial statement is known as the normalized financial statement. The financial statement of a company often includes expenses and revenues that are not part of its ...

What is the Venture Capital Exemption from the Investment Advisor's Act? Lots of regulations surround the sale of securities and management of other people’s money for the purpose of investing in securities. One of the most daunting rules governing the actions of individuals investing the funds of others is the Investment Advisor’s Act of 1940 (“Adv...

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...

Broad-Based vs. Narrow-Based Weighted Averaged Calculation There are two primary variations of the weighted average formula depending on what constitutes common outstanding in the above formula. The first, and more common, is referred to as broad-based, weighted average while the second is referred to as narrow-based, weighted average.  The broad-ba...

What is a Catch-Up Contribution? A catch-up contribution is retirement savings contribution approved and regulated by the Internal Revenue Service (IRS). This retirement savings contribution is designed for individuals who are at least 50 years of age and have a 401(k) account, traditional IRA or Roth IRA. The 2001 Economic Growth and Tax Relief Rec...