What is Collateral? Collateral is an asset that is used as a pledge against a financial obligation, such as a loan or bond. Generally, collateral may be repossessed by the secured entity and sold if the underlying obligation is not paid.  When is Collateral required? Collateral is used to mitigate risk. Some common types of risks include: Payment de...

What is the Uniform Commercial Code? The Uniform Commercial Code (UCC) is a set of model business laws related to business transactions and financial contracts in the United States. The UCC, as a Model law, is a set of systematic (standardized) business laws that guides business conducts, exchange of goods, credit institutions, bank transactions and...

What are Blue Sky Laws? Blue-sky laws are state laws regulating the sale of securities within that state. These laws are so named from early laws passed in Kansas and in the Midwest to protect investors from undertaking investments that had no more substance than the blue sky. Issuers of securities must comply with these state laws as well as the pr...

What is a Histogram? A histogram refers to a process of arranging data points based on their specific ranges and user value. It is a visual or graphical representation of statistical data or information. A histogram is often used in statistics and mathematics, it is similar to a bar graph but the bar in a histogram contains different ranges of data,...

How Can a Startup Relocate to the US? Businesses operating outside of the United States often seek to expand or relocate operations to the United States. The United States is a large market for potential customers or clients. This is particularly beneficial to startup businesses that need to scale and grow rapidly as part of its business model. Open...

What is Defeasance? Defeasance refers to the substitution of collateral in a loan agreement. It occurs when cash or bonds equivalent to a borrowers debt is substituted for the collateral and used to service the debt. Defeasance often renders a loan void given that the borrower sets aside sufficient cash to offset the outstanding debt. Defeasance is ...

What is a Redemption Period? The time duration offered to borrowers, during or even after a foreclosure in some cases, to return the borrowed money - pay off the debt owed to the investors, and reclaim their assets, is called the Redemption Period in Real Estate Foreclosures.  It's also a term used for online properties like website addresses. Owner...

What is Plurality Voting? A Plural Voting system, as opposed to a single winner electoral system, is one in which each voter casts one vote to choose one candidate amongst many, and the winner is decided on the basis of the highest number of votes garnered by a candidate. Its also known as winning by a relative majority when the winning candidate re...

Should You Take Online Classes? In this podcast episode, Professors Gordon and Kooti discuss the considerations for whether to take online or hybrid courses in college. ...

In this article we explore the sole proprietorship and its characteristics as a business entity. Many people do not think of or recognize the sole proprietorship as a form of business entity. This is primarily because the boundary between the individual entrepreneur and business entity is often blurred. This chapter should supply you with sufficient...