Overview of the Board of Directors The directors of the corporation are elected by the shareholders. The board of directors represents the interests of the shareholders within the corporation. The role of the board of directors is to make high-level operational, strategic, and governance decisions for the corporation. The bylaws set procedures and c...

Developing an Operational Plan Below are proposed steps for developing an operational plan: 1. Develop a concept of business operation. Describe your product/service. Identify the key competitive practices and important players: Key Hires, Suppliers, Intermediaries 2. Acquire Necessary Information Obtain Facts from Research, Field Tests, Experts Be ...

What is Market Capitalization? Market capitalization, also known as Market Cap, refers to the collective value of the company. That is, it is the value of all company ownership shares issued and outstanding by a company.   Market capitalization can be determined by identifying the value of the company through a valuation method.  Further, the Market...

What is Administrative Management Theory? Administrative Management Theory focuses on how management and workers are organized within a business to allow for the completion of task. It posits that the effective organization of management would ultimately have an effect on the productivity of operational-level workers.  What is Process Theory? Admini...

What is Legal Tender? Legal tender is a type of currency or medium of exchange. It is money that is valid and acceptable for the settlement of debts which must be recognized when issued. What Constitutes  Legal Tender? Both bills and coins are regarded as forms of legal tenders while postage stamps don't qualify to be legal tender. Many countries co...

How are Partners Compensated? Partners do not receive a salary from the partnership. Rather, the partners are compensated by withdrawing funds from partnership earnings. Partnerships are flow-through tax entities. As such, any profits or losses produced by the partnership pass through to the partners. This is known as that partner's distributive sha...

What is Action Learning?  Action learning, a theory officially introduced by Reg Revans, is a process of learning by doing to bring about organizational change. Thought, it is an accepted approach to individual and organizational development.  Reg Revans described Action Learning with the formula  L = P + Q,  where Learning (L) occurs through Progra...

What is the Commodity Futures Trading Commission? The Commodity Futures Trading Commission (CFTC) is a federal agency in the United States charged with regulating and overseeing trade activities in the futures and options market. The agency was founded in 1974 following the establishment of the 1994 Commodity Futures Trade Commission Act. CFTC formu...

What is a Blocked Fund? A blocked fund is defined as money or capital realized when a foreign operation involving the transfer of funds is blocked as a result of regulations imposed by the government of the country where the money was generated. When a fund is suspected to be generated from illegal activities or criminal acts, the government can imp...

What is a Pipeline (Business Operations)? An operational phase that leads to achieving a specified goals is called a Pipeline. It encompasses all the intermediate steps from the conceptualization of a new plan to bringing it to fruition. If something is said to be "in the pipeline", it is under development and will be realized in the future....