A shareholder is a person, company, or institution that owns at least one share of a company’s stock or a share of a mutual fund. Shareholders essentially own the company, which comes with the right to share in the profits.

EO companies, and ESOPs in particular, have some reporting duties pertaining to the sponsoring company, e.g., financial statements containing the # of shares held by the ESOP, fair value of unearned shares, total of repurchase obligations, etc.

Also known as the "death tax," a tax that's levied on a dead person's inherited assets. Ranges from rates of 18% to 40% and generally only applies to assets over $13.61 million in 2024. Thirteen states levy an estate tax. Thresholds can vary from state to state.

An individual's capital investment in a property (e.g., a business) for tax purposes.

Testing for qualified retirement plans, e.g., ESOPs, pertaining to IRC Section 415 which limits the annual additions allocated to a participant’s account in all defined contribution plans to the lesser of 100% of the participant’s compensation or the statutory limit in effect for the calendar year in which the Plan year ends.

A statement given buy a seller to a buyer itemizing the sale and demanding payment. A bill may be for the sale of a good or a service.

A credit union is a member-owned financial co-operative. Unlike in a traditional bank, where the owners are those who buy stock, not necessarily those who have accounts, credit unions are created and operated by account holders, who are the members-owners, and profits are shared amongst the owners.

When something appreciates, it increases in value. Most fixed assets depreciate

Any business in which two or more family members are involved and the majority of ownership or control lies within a family.

In the black means your business is turning a profit and not in debt.

A sole proprietorship is a type of business that is owned and run by one person and in

The solidarity economy is a global movement to build a just and sustainable economy.

Typically refers to companies with an enterprise value above $5 billion.

The pattern of inflows and outflows of money, such as income from sales and expenses paid out, and the resulting availability of cash in the bank.

In economics, variable cost and fixed cost are the two main costs a company has when producing goods and services. A company’s total cost is composed of its total fixed costs and its total variable costs combined. Variable costs vary with the amount produced. Fixed costs remain the same, no matter how much output a company produces.

an agreement entered into between an employing entity and the bargaining representative of its employees.

Growing better leaders at all levels.

In a business setting, liabilities refer to money that a business owes its creditors.

Typically refers to companies with an enterprise value between $1 billion and $5 billion.

Generally speaking, a collective is an organization that is managed without hierarchy. This means that every person has equal decision-making power. Some decisions may be delegated to individual members or sub-committees, but no one has the special, authoritative power usually granted to a manager.

Helping leaders level up their skills and impact.

Coronavirus disease (COVID-19) is an infectious disease caused by the SARS-CoV-2 virus.

To write off means to reduce value. Businesses will occasionally reduce the value of certain assets by writing them off, such as writing off unpaid and uncollectable invoices as bad debt. Taxpayers may also reduce their taxable income by writing off certain expenses.

Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operating costs.

The point, especially the level of sales of a good or service, at which the return on investment is exactly equal to the amount invested.

In accounting, anything of value that a person or business buys. Assets can be physical, such as real estate or stocks, or intangible, such as a claim on debts, such as accounts receivable or liens, or a right, such as a patent. Of crucial importance to assets is their relative liquidity, or the ease with which they can be converted to cash.

Loan guarantees are promises by an individuals, government, or organization to repay a loan if the borrower defaults, reducing risk for the lender.

The final (large) payment that repays all the remaining principal and interest of a partially amortized or unamortized loan.

Overhead is an accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. Also known as “indirect expenses” or “indirect costs”.

Junior capital defines any non-senior type of debt capital, including mezzanine debt or equity; it is at the risk capital level and generally not secured by assets, i.e., if the company does not achieve its goals the investor’s capital has a high degree of risk of loss.