What is a Black Hat SEO? Black hat seo refers to a set of practices that are used to increase a site or a pages rank in search engines through means that violate the search engines terms of service. Black hurt is a term originated in Western movies and recently it is used to describe computer hackers, virus creators and those who perform unethical a...

What is a Unitary Tax System? Unitary tax system is a taxation approach whereby the income of profits (and losses) of different branches of a corporation are calculated under one group. Unitary tax system is also called Formulary apportionment, under this system, all the profits and losses of different groups of the same corporation are allocated to...

Is it Better to Form an LLC in Wyoming or Nevada? Deciding which state in which to incorporate is a significant decision for any business. This is particularly true for real estate holding entities. Holding entities wholly owned by an individual are generally limited liability companies (LLC). Holding entities for investment funds, generally form a ...

What is Phishing? Phishing is a tricky and shoddy way of extorting sensitive information from individuals or even corporate organizations. Phishing is a fraudulent means of getting vital information such as credit card numbers, login passwords, and other confidential information through disguise. Fraudsters pose as professionals or cyber security ex...

What is an Aggregate Production Function? The aggregate production function is the maximum output that can be produced given the quantities of the factors of production. Note that, in what follows, lower case letters refer to plant level variables while the corresponding capital letters refer to aggregate variables. Let output be denoted by Y, the c...

What is the Anti-Dumping Argument for Restricting Imports? Dumping refers to selling goods below their cost of production. Anti-dumping laws block imports that are sold below the cost of production by imposing tariffs that increase the price of these imports to reflect their cost of production.  Since dumping is not allowed under World Trade Organiz...

What is Price Based Anti-dilution Formula? Investors in startup companies generally require preferred shares in exchange for their investment. Preferred shares have numerous characteristics that protect the rights of the investor. One of the most prominent protection is anti-dilution. These provisions protect investors from losing value in their own...

What is a Cap Table? A capitalization table, or cap table for short, is an ordered list of your companies outstanding securities, including stock, options, warrants, and convertible notes, and who owns them. The cap table has several important roles. Entrepreneurs use the cap table to make decisions that impact the capital structure, such as retaini...

What is a Return to Scale? When viewing the long-run average cost curve, the average costs begin by going down as more units are produced. This is because of economies of scale.  Eventually, economies of scale have been exhausted, and the LRAC curve goes flat. At this point, all inputs to expand does not much change the average cost of production. T...