General partners are two or more persons engaged in a business for the purpose of joint profit, thereby creating a general partnership. General partners assume unlimited joint and several personal liability; as such, a general partner may be...
business organizations
going concern
Going concern is an accounting term, which means a business is financially stable and can operate with the expectation of indefinite existence. A company must begin disclosing specific information on its financial statements if it can no...
going dark
Going dark refers to when a public company becomes a private company. It is also referred to as “deregistration.”
The Securities and Exchange Commission (SEC) regulates how companies can go dark in Rule 12d2-2, requiring...
golden parachute
Golden parachute refers to a payment agreement for officers and management if they lose their jobs or face major changes to their jobs due to a sale of their company. Often when a public company faces a hostile takeover, the officers and...
greenmail
Greenmail refers to a strategy used by corporate boards of directors to prevent the takeover of a corporation or the increasing influence of an adverse shareholder. Greenmail became extremely popular in the 1980s with the rise of takeovers of...
gun jumping
Gun jumping refers to unlawful activities by a company awaiting regulatory approval for a transaction. The term arises in the context of (1) securities regulation and (2) anti-trust regulation.
(1) Gun jumping in Securities Regulation...hiring firm
Hiring firms are businesses that employ one or more independent contractors. Unlike traditional employees, independent contractors are not entitled to tax withholding, Social Security and Medicare contributions, workers compensation, or the...
hobby loss
A hobby loss is a loss from a business to an activity not engaged in for profit, which can be deducted against annual income. According to the Internal Revenue Service (IRS) a hobby is an activity done for enjoyment. Hobby Loss is not tax...
holder in due course
A holder in due course is any person who receives or holds a negotiable instrument such as a check or promissory note in good faith and in exchange for value; without any notice or suspicion that it is overdue or was previously dishonoured....
holding company
A holding company is a corporation that owns sufficient voting stock in another corporation to control its policies and management. Holding companies are regulated by various laws, including the Securities Exchange Act of 1934 and the...