Financial blogging for Chron.com

Can Nonprofit Corporations Issue Stock?. Nonprofit corporations can’t be owned by any individual or group, including even the founder, and unlike for-profit corporations, nonprofits generally can’t issue shares of ownership like a stock. Some states let nonprofits issues shares that do allow for som…

LLC Classes of Stock. A limited liability company gives sole proprietorships or partnerships the ability to be treated like a corporation and receive certain tax and liability benefits. An LLC offers many ways to invest into a corporate structure, but it does not issue shares like other corporations…

How to Avoid Liquidity Risks. Without sufficient liquidity, it is harder for small businesses to get loans or other financing to make necessary payments or fund capital projects. Small businesses that want to avoid liquidity risks need to maintain a positive balance sheet and closely manage inventor…

Profit & Loss Examples for Restaurants. A profit and loss statement, also called an income statement, lists the revenues and expenses of a business during a given period and give a restaurant owner the bottom line on whether it is making money. A restaurant’s profit and loss statement will show the …

What Is Cultural Conflict in Business?. With the growth in international trade, telecommunications and cultural diversity, there are a variety of scenarios where American small businesses must face issues of cultural conflict. Most common are international trade and sales negotiations, where the dif…

How to Calculate Sufficient Liquidity. Liquidity is a financial term used to describe how easily an asset can be turned into cash, and for small businesses, it shows how likely a company will be to meet its short-term obligations. Small businesses that calculate and look for sufficient amounts of li…

How Does a Corporation Board of Directors Work?. A small business that has incorporated must by law have a corporate board of directors and hold annual meetings. Boards of directors are elected by, and responsible to, the corporation’s shareholders. They offer companies independent oversight and str…

How to Estimate Gross and Net Earnings. Business owners who want to estimate their earnings will need to closely track sales and costs data and use this information to make profit and loss forecasts. Gross earnings help show how profitable the products or services being sold are. Net earnings takes …

Ways in Which a Company Can Generate Investment. Investors can supply the capital that’s needed to get a startup off the ground. There are several ways a small business can bring in investors, from selling stock to finding new partners. Small businesses may need to change how they operate in order t…

Resolution Vs. Motion in Corporate Minutes. Companies that are incorporated in their state are required to hold an annual meeting of the board of directors and keep a record of any action by taking minutes. Motions and resolutions are how meeting participants propose that either the board or the cor…

What Happens to a Stock When a Company Is Bought Out?. A buyout or merger is often how successful companies fuel their growth. When one investor or company wants to buy another company, it proposes a deal to make an “acquisition” or buyout, usually by taking ownership of the company stock. Investor…

Can an LLC’s Interest Be Left in a Trust?. The membership interest in a limited liability company is legally allowed to be held in a trust, though the rules depend on the operating agreement on which the LLC is based. By placing an LLC’s membership interest in a trust, the owner can make it easier t…

How to Obtain Not for Profit Articles of Incorporation. Articles of incorporation represent a document filed with the state that contains the basic structural information of any corporation, including non-for-profits, called “nonprofits” by many states. Anyone can file articles of incorporation with…

Small Business Operating Agreement. An operating agreement is a type of document commonly used for small business organized as limited liability companies. It lays out the structural and management details of the business, and is required in a few states for LLCs. An operating agreement is good busi…

How to Write an S Corp Operating Agreement. An S corporation, or S-corp, represents a special Internal Revenue Service tax classification that gives a company’s shareholders tax advantages. When registering an S-corp with the state, the owners generally need to file articles of incorporation and cor…

The Advantages of Selling Stocks for a New Business. Startup companies and small businesses that want to issue shares of stock have to incorporate as a C corporation, or C corp. Selling stocks lets companies quickly raise a potentially unlimited amount of funds to invest in new projects or company o…

Outright LLC Vs. C Corp for Startups. A startup can have many needs, some of which might be better met if structured as a limited liability company, or LLC, and others if the business is registered as a standard C corporation, or C-corp. In both cases, incorporating helps shield an individual from a…

The FCC Requirements For a New Phone Company. Small businesses don’t need to lay their own telephone lines to start a phone company. Voice over Internet Protocol technology enables anyone to start a phone company and offer VoIP-based consumer phone service, prepaid calling cards or other services. C…

What Is an LLC Nominee?. A nominee for a limited liability company serves as a public representative for an LLC to keep the identities of the true owners private. While nominees were once used to obtain complete privacy for an LLC’s membership, IRS rules have recently clarified that only the actual…

The Advantages of Selling Stocks for a New Business. Startup companies and small businesses that want to issue shares of stock have to incorporate as a C corporation, or C corp. Selling stocks lets companies quickly raise a potentially unlimited amount of funds to invest in new projects or company o…

The Customer Loyalty Theory. Customer loyalty marketing is a major segment of marketing theory and considered one of the value propositions that a marketer can offer a potential customer. Customer loyalty marketing programs can come in many forms, with common examples of loyalty programs being airli…

Viral Loop Marketing Theory. The viral expansion loop is a marketing theory where users of a product are its primary marketers. Companies that use viral expansion loops aren’t just trying to create popular videos and content that users can repost. With a viral expansion loop, the fans of product hel…

Importance of Colors in Fundraising Advertising. Emotional appeals are a common fundraising advertising strategy, and colors can tap into potential donors’ feelings of generosity and compassion. Marketing researchers have studied human reactions to color and found how each color can create a range o…

Healthcare Marketing Laws. In addition to general truth-in-advertising laws, marketing of healthcare products and services can fall under a variety of laws, regulations and enforcement agencies, depending upon the ad’s claims or the product or service being marketed. Medical professionals and drug m…

Laws on Lying in Advertising. Whether on national TV or in the local newspaper, advertisements must be truthful. Depending upon what you are selling, there could be a variety of truth-in-advertising laws and regulations that small businesses must follow. Ads also have to be fair to consumers and agg…

Laws Governing Subliminal Messages in Advertisements. While the U.S. Congress has never passed a law restricting subliminal advertising, government agencies have said the practice is unfair and could result in enforcement, especially for broadcast stations that air subliminal messages. However, ther…

What Does Marketing Plan Metrics Mean?. Marketing plan metrics are measurements that let advertisers, marketers, business owners and others judge how well a marketing or ad campaign is working. Campaigns can have different goals, such as increasing sales or improving brand recognition, and marketers…

The Market Size of Healthcare IT. The market for information technology in the U.S. healthcare industry is projected to grow 20 percent each year through 2014, fueled in part by new laws mandating more up-to-date healthcare recordkeeping. With spending topping $40 billion-a-year, the healthcare IT i…

March Madness Advertising Ideas. The men’s NCAA college basketball championship tournament, known by many as “March Madness,” is one of the highest watched televised sporting events in the United States. The event draws millions of viewers and has a widespread appeal. March Madness is rivaled only b…

Affiliate Marketing Tracking Tools. Affiliate marketing is a small business sales system in which online marketers use web pages, email, web-page ads, search engine results and other methods to direct traffic to another website, usually to make a sale. Unlike marketing for physical stores, where it …

The Top Subliminal Words for Sales. True subliminal advertising, where sales words are briefly flashed into films and movies, is unethical and the government does not allow this. However, in both sales and advertisements, small businesses can use coded language to help influence consumers. Adding ke…

Restaurant Marketing: What Certain Types of Customers Want. Just as customers have different styles of restaurants to choose from, restaurant owners can choose from a variety of marketing strategies that appeal to different types of patrons. Most restaurants target specific markets or demographics a…

What Is Bonding & Liability Insurance?. Small business owners that want insurance for mistakes, accidents or work stoppage problems that can occur during the course of operations have a variety of types of coverage to consider. Surety bonds ensure that a project will be finished and are widely used …

A limited liability company, or LLC, is a legal structure that provides businesses run by single owners or partnerships with increased legal and personal asset protections. Any small business can organize as an LLC, which can give owners different options for filing and reporting taxes. LLCs aren’t …

How to Fill Out a Schedule D Tax Worksheet. If your small business is a sole proprietorship, partnership, limited liability company or S-corporation, you and any co-owners pay the business’s taxes through the income you report to the Internal Revenue Service on your 1040. If your business sold any c…

How Do Business Owners Keep Track of Tax Deductions?. There are many reasons for small business owners to closely track their expenses, with perhaps none being more important than knowing what tax deductions are available. The tax code gives businesses many opportunities to cut ordinary business exp…

Do Brokers Need to Hold Cargo Liability Insurance?. Freight brokers and third-party logistics providers act as a middle-man between the owners of products and the transportation services that carry them, such as rail, trucks, ships and planes. Brokers can be held liable if a shipment doesn’t arrive …

The Advantages of Amortization & Depreciation. Amortization and depreciation are accounting and tax payment methods that let business owners spread the costs for major purchases and financing projects over time. Amortization and depreciation give small businesses an advantage, because they create mo…

What Happens if Payroll Checks Are Not Cashed?. If an employee fails to cash a payroll check, it is treated as abandoned property or “escheatment” by the state government, which eventually will take ownership of the check and hold the funds until the owner or an heir makes a claim. The business owne…

The Best Hiring Method For Human Resource Managers. Hiring is a critical part of any company’s growth. A small business owner won’t be able to execute their plans for expansion without having the right staff to implement it. Large companies often hire human resource managers who include hiring and r…

Examples of Objectives for a Hiring Office in Human Resource. Human resource specialists are experts in managing the most important asset of any business — its people. A strong staff can improve the capabilities of a business and help it grow. Human resource hiring offices can recruit qualified pro…

How to Deduct Workers’ Compensation From Federal Tax Form 1040. Small businesses that are sole proprietorships, partnerships or limited liability corporations are allowed to deduct costs for workers’ compensation insurance from their federal and state taxes. The deductions are documented on Internal…

How to Measure the Reach of TV Advertising. Reach is one of the primary metrics for measuring any TV advertising campaign. It refers to the number of viewers that have the opportunity to view an ad during a given time period. Advertising sales executives usually have extensive data about the reach o…

How Does Packaging Affect Consumers?. Packaging is a key part of the marketing plan for any business that makes or sells products. A product’s package can be the selling point for many consumers by delivering a sense of quality while also reflecting the product’s brand image. It is critical in retai…