Definition provided by Nolo’s Plain-English Law Dictionary.
business organizations
Divestiture
Definition from Nolo’s Plain-English Law DictionaryThe disposition or sale of an asset by a company or government entity. It may be voluntary or ordered by a court.
Divestment
Definition
The partial or full removal of an asset or investment from a business' books. Businesses can divest through sale, closure or bankruptcy. May also refer to a change in corporate strategy or a withdrawal from certain investment goals.
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Doing Business As (DBA)
Abbreviated DBA or d/b/a, doing business as is a term indicating that the name under which the business or operation is conducted and presented to the world is not the legal name of the legal person (or persons) who actually own it and are responsible...
Domestic Corporation
Definition
A U.S. corporation that does business in the state in which it is incorporated. Compare to a Foreign Corporation.
Double Taxation
Definition
Refers to the imposition of taxes on the same income, assets or financial transaction at two different points of time. A common example is the taxing of shareholder dividends after taxation as corporate earnings. Another common example is...
Dump-buyback
Definition from Nolo’s Plain-English Law DictionaryA plan by which the owners of a failing business form a new legal entity which then purchases some or all of the assets of the first business for their liquidation value. This can be done informally with...
Duty of Loyalty
Definition
The duty of loyalty stands for the principle that directors and officers of a corporation in making all decisions in their capacities as corporate fiduciaries, must act without personal economic conflict. The duty of loyalty can be breached...
Enhanced Scrutiny Test
1. In the law of corporations, a test established in Unocal Corp. v. Mesa Petroleum, 493 A.2d 946 (Del. 1985), also known as the UNOCAL test. In this case, the Delaware Supreme Court established the enhanced scrutiny test, which is applied to a...
Entity
Definition
A person or organization possessing separate and distinct legal rights, such as an individual, partnership, or corporation. An entity can, among other things, own property, engage in business, enter into contracts, pay taxes, sue and be sued...
Entity Liability
The concept of entity liability allows a corporation to be held liable for the criminal misdeeds of its agents if (1) the agent is acting within the actual or apparent scope of their employment or authority and (2) if the agents intend, at...