What is the Operating Company/Property Company Model? An operating company (OPCO)/property company (PROPCO) refers to an organizational model in which a property company, also called subsidiary company, and not the operating company (main company) has the ownership of all the properties that generate revenue or income. OPCO/PROPCO makes it easier fo...

What is the Government Accountability Office (GAO)? The 'Government Accountability Office (GAO) is an agency under the legislative branch of the U.S. government that monitors and audits the United States Congress spending and operations. It keeps track of the taxpayers dollars that are used by the legislature and the executive branches. It monitors ...

What are Friends and Family Shares? Friends and family share refers to a program that offers a company's shares to persons such as employees, friends, and family before the company is listed. The program allows these individuals to have a stake in the business, which enables them to generate wealth for their loyalty and hard work. These shares usual...

What is a Cottage Industry? A cottage industry generally refers to a business that produces goods on a small scale and in a decentralized manner. It may be that the manufacturing is done from a residential dwelling. The products are often handcrafted.  Cottage industries usually have only a few workers. They play an essential role in the economy of ...

What is a Functional Strategy?   A functional strategy, also known as a “departmental strategy”, concerns each organizational function, and how that organizational unit or division assigned that function will achieve its strategic objectives (a part of the business/competitive strategy). It generally does this by improving or maximizing efficiency a...

What is a Spinoff? A spinoff refers to a process of creating a new company from an existing one through the division or separation of a subsidiary from a parent company. A spinoff can also occur when a new product is created from an old one, either through the modification of the old product or the creation of a new product.  A spinoff is otherwise ...

What is a Corporate Charter? A charter is a legal document authorized by a state to recognize the creation of a corporate business entity. Some states issue a Certificate of incorporation, rather than a charter. The charter generally bears the seal of the state of organization, the name of the company, its entity designation (such as Inc., Ltd, Corp...

What are the Benefits of a Business Degree? A business degree creates a signaling function to employers that entails the following benefits: Formal Credentials Exposure to Knowledge Talent or Skills General Intelligence Diligence or Work Ethic Fit (Beliefs, Interests, Values) Formal Credentials When seeking a management position or professional serv...

What is Egocentricism? The term egocentrism refers to a person's inability to comprehend that views or opinions may be different from their own. More specifically, it is a cognitive bias that limits one's understanding of others to her own perspective.  Egocentricism as a concept was developed in Piaget's theory of childhood development.   How does ...

What is a Joint Life with Last Survivor Annuity? Joint life with Last Survivor annuity is an insurance plan that allows the beneficiaries (annuitants) to receive contractual payments. If one beneficiary passes away, the second covered beneficiary receives payments until death. This type of insurance plan always requires two or more annuitants (usual...