In general, a partner is a co-owner or investor in a business, called a partnership, who shares profits from that partnership with at least one other person and is involved with its operations. Partners are agents of the partnership and may...
llcs-corporations-partnerships
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According to New York Partnership Law, a partnership is a voluntary, contractual association between two or more parties to carry out business for-profit as co-owners. Partnerships are composed of partners, who are agents of the partnership...
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Pass-through taxation refers to businesses that do not pay taxes on the entity level. Instead, the income passes to the owners of the business who pays personal income taxes for their share of the business. Pass-through taxation typically...
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Piercing the veil, also known as "piercing the corporate veil" refers to a situation in which courts put aside limited liability and hold a corporation's shareholders or directors personally liable for the corporation’s actions or debts. Veil...
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A poison pill is a corporation’s defensive strategy used against a hostile takeover. When a hostile takeover tries to merge a target company by buying its stocks publicly or privately, the target company could issue preferred stocks that will...
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A preemptive right is a right of existing shareholders in a corporation to purchase newly issued stock before it is offered to others. The right is meant to protect current shareholders from dilution in value or control. Preemptive rights, if...
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Preferred dividend is the dividend payment made to the holders of preferred stock. As a rule, preferred dividends are paid out to shareholders before common stock dividends are issued. Further, in insolvency proceedings, the claims with...
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A professional corporation (abbreviated as PC), also known as a professional service corporation (abbreviated as PSC), is a type of corporation established by state statute that permits owners of certain licensed professions, such as...
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In law, profit refers to the positive gain or income a person or entity derives from an activity, transaction, or business. It is net income from business operations, investments, or other activities. In legal contexts such as taxation,...
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A promoter is broadly defined as someone who encourages or incites a certain behavior. In corporate law, a promoter is the founder or organizer of a corporation or business venture; the person who takes the initiative to create or organize a...