SEC Form 25 is a filing that must be made by a corporation when it ceases to be a public company. The form is filed with the Securities and Exchange Commission (SEC) and must be signed by the company’s CEO or CFO. What happens to shareholders after delisting? When a company is delisted from a … Read more
Corporate capital refers to the funds that a corporation uses to finance its operations. This can include money that is raised through the sale of equity, as well as debt financing. The funds that are generated from these sources can be used to cover a variety of expenses, such as the costs of raw materials, … Read more
A reverse stock split is when a company decreases the number of shares outstanding by consolidating them into a smaller number of shares. For example, if a company has 1,000 shares outstanding and does a 1-for-2 reverse stock split, then it would have 500 shares outstanding after the split. The main reason companies do reverse … Read more
Capacity refers to the amount of output that a company can produce given its current resources. It is usually expressed as a maximum amount that can be produced in a certain period of time, such as per day, per week, or per month. The term can also refer to the amount of products or services … Read more
A financial intermediary is an entity that provides financial services to two or more other parties. Financial intermediaries are typically financial institutions, such as banks, credit unions, and investment firms. They can also be non-financial companies, such as insurance companies and pension funds. Financial intermediaries use their own capital to fund transactions between their clients. … Read more
A capacity cost is a type of sunk cost associated with the decision to add capacity to a business. A capacity cost is incurred when a business expands its operations by adding new facilities, equipment, or personnel. The cost is considered sunk because it has been incurred regardless of whether or not the expansion ultimately … Read more
Corporatization is the process of transforming a company or organization from a privately owned entity into a corporation. The process typically involves the company becoming a publicly traded company, issuing shares of stock to investors, and becoming subject to various regulations and requirements as a public company. Corporatization can also involve the company becoming a … Read more
Adhocracy is a term used to describe a company or organization that is characterized by a lack of structure and a reliance on creative, flexible approaches to problem-solving. This type of organization is often seen as the opposite of a bureaucracy, which is characterized by Rigid rules, hierarchies, and a lack of flexibility. Adhocracies are … Read more
Assurance services are professional services rendered by accountants that help organizations manage risk and improve their operations. These services provide an independent, third-party opinion on an organization’s financial statements and other business practices. Assurance services can help organizations improve their financial reporting, manage their risks, and make better decisions. There are three types of assurance … Read more
A static budget is a budget that does not change, regardless of actual activity levels. Static budgets are often used in planning and decision-making, as they provide a clear and easy-to-understand picture of expected costs. However, static budgets can be inflexible and may not provide accurate information if actual activity levels differ significantly from those … Read more
