corporations

A/R is the abbreviation for accounts receivable.

[Last reviewed in June of 2022 by the Wex Definitions Team]

Depreciation is the reduced value of something over time. Accelerated depreciation is any loss of value where the business depreciates (i.e., accounts for the value loss of a fixed asset in tax filings) at a greater proportion of an asset’s expected lifetime value loss earlier in its life. 

Under federal law, an accredited investor is a special kind of investor that due to certain special circumstances or qualities—as the ones indicated in Rule 501 of Regulation D—is allowed to purchase or be offered to purchase unregistered securities.

Accumulated earnings represent a company’s net profit after having distributed dividends to the stockholders. It is often used in accounting to determine how much net profits a company has left after having paid dividends.

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See: agent for service of process

[Last reviewed in March of 2022 by the Wex Definitions Team]

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An agent for service of process is the person designated by a business entity, such as a corporation or limited liability company (LLC), to receive legal documents and lawsuits on behalf of the business entity within

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Alter ego is a legal doctrine whereby the court finds that a corporation lacks a separate identity from an individual or corporate shareholder. The court applies this rule to ignore the corporate status of a group of stockholders, officers, and directors of a corporation with respect to their limited liability.

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Amortization has different meanings for loan payments and for taxes. In the context of loans, amortization refers to separating the payments for the loan principal and interest into periodic payments to where the loan is paid off at a specified time, thereby gradually reducing the debt through repayment both lender and borrower agree.

Annual meeting refers to the shareholders' general meeting held yearly on the date or according to the formula by which such a meeting date will be fixed, as prescribed in the corporation's bylaws. The purpose of the annual meeting is for shareholders to elect the directors.

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An anti-greenmail provision is a provision within a corporate charter that prevents the company’s board of directors from making greenmail payments. 

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