What are Participation Rights? In some cases, the investor will negotiate for the ability to participate with common shareholders in the distribution of proceeds after receiving the liquidation preference. That is, the investor is paid the full liquidation preference, then they participate with common shareholders in receiving a percentage of the re...

What are the Actual Deferral Percentage & Actual Contribution Percentage Tests The Actual Deferral Percentage/Actual Contribution Percentage simply refers to two separate 401 (k) nondiscrimination plan tests. ERISA and the IRS require that a 401K pass these tests to maintain its qualified status. The purpose of these two tests is to determine wh...

What is the 5th Amendment? The 5th Amendment provides US citizens with the following rights or protections: The Right against Self-Incrimination Prohibition of double jeopardy. The Right to Due process Eminent Domain Each of these is discussed in greater detail below. What is the 5th Amendment to the Constitution? The 5th Amendment contains a number...

What is the Project Implementation Phase? The first step of implementation is beginning to undertake the various things that went into planning.  The exact steps involved in the implementation stage are particular to the specific project. In summary, the project manager will begin directing work and resources toward the completion of work, execution...

What is a Severance Tax? A severance tax is a tax imposed by the state on natural resources that are extracted within the jurisdiction of the state but intended for use in another state. Individuals or miners pay severance tax on the vale of non-renewable natural resources such as coal, oil, gas, uranium, timber, and others extracted from the earth....

What is a Breadboard Configuration? Breadboards (or solderless breadboards) are a learning an prototyping tool for building circuits....

Business Presentation Components The parts of the Business Presentation include: Plan Pitch Deck Pitch The Business Plan In the business plan section we talked about the various purposes of the business plan. Refer back to that section for guidance on preparing the business plan for investors. The important thing to remember is to format the busines...

What is the Housing and Economic Recovery Act? The Housing and Economic Recovery Act (HERA) came into being as a countermeasure to recover the U.S. economy following the subprime mortgage crisis of 2008. HERA facilitated a Federal Housing Administration (FHA) guarantee to the tune of $300 billion in fresh mortgages aimed at subprime borrowers. To be...

What is perception in negotiation? Perception is the process by which individuals connect to their environment by ascribing meaning to messages and events. This process is strongly influenced by the perceiver's current state of mind, role, and comprehension of earlier communications.  What is Perceptual Distortion? Perceptual distortion is a common ...

What are some Common Types of Business Insurance? Several common types of business insurance policy are discussed below.  What is Business Liability Insurance? Business liability insurance can have any number of property and liability protections. The most common form of business liability insurance is a comprehensive general liability (CGL) policy....