What is a Security Agreement? A security agreement is the contract that establishes a creditors security interest in the collateral of the debtor.  Generally, to establish a security interest the security agreement must expressly indicate the intention to create a security interest and be authenticated under 9-203(b)(3)(A).  Section 9-203(b)(3)(A) r...

What authorization is required to file a financing statement? A secured party must be authorized to file a financing statement against the assets of the debtor. If the debtor is bound by a security agreement, authorization to file a financing statement is implied. If the debtor is not bound (or not yet bound) by the security agreement, the debtor mu...

What is a Clearing House? A clearing house refers to an establishment, usually a financial institution that facilitates the exchange of cheques, bills and other derivatives between members. A clearing house acts as an intermediary between a buyer and a seller in the exchange of financial instruments. When banks need to exchange cheques, bills, secur...

What are the theoretical (political) views toward judicial review? Judicial Restraint is the political view courts should refrain from issuing opinions that expand or change the nature of an existing law unless absolutely necessary.  Judicial Activism is the political view that courts are best positioned to develop law through the interpretation of ...

What are Asset and Liability Tactics as Defenses to Hostile Takeovers? Examples of such tactics include Legal Lockups, Asset, Restructuring, and Engaging Litigation. What are Legal Lockups? The corporation may be able to halt or delay the acquisition by making it less lucrative to the acquirer or making it illegal under existing law. What is Asset R...

What is a Standardized Employment Budget? The standardized employment budget is the budget deficit or excess for any given period modified to reflect what the business would generate if it were functioning at potential GDP. Every year, the Congressional Budget Office (CBO), a neutral organization, calculates the standardized employment budget. Relat...

What is Inclusive Value Measurement (IVM)? Inclusive Value Measurement, proposed by Prof. Philip M'Pherson, is a rule-based mathematical model of multidimensional human-valuation (free from subjectivity) that can be keyed into a wide range of applications in business, public sector, and engineering. With Inclusive Value Measurement, all aspects of v...

What is a Jitney? Jitney is a broker that is able to perform stock exchange trade on behalf of another person who is not able to. The concept also refers to a stock trading that is fraudulently done to increase stock volume. As such, the fraudulent trading may involve only 2 brokers that are trading stocks back and forth in order to earn more commis...

Overview of Financial Projections Now that you have an operational plan in place, it is time to develop financial projections for your business. Financial projections present a numerical model of your business. They reveal the entrepreneurs basic assumptions about business potential and tell about the expectations for the business future. Perhaps, m...

What is a Decision Tree? In a decision-making process, a decision tree is a graphical and statistical representation of the likely outcome of a decision. It is called a decision tree because is uses a tree-shaped diagram or a branching method to depict an action or a decision and also its likely outcomes. A decision tree serves a decision support to...