Income is a contractual clause that says that the seller of the business must be compensated in the future if the business achieves certain financial goals.
Different business expectations between seller and buyer are usually resolved through earnings.
Revenue removes uncertainty for the buyer as he pays only a portion of the sale price up front and the remainder is subject to future performance. The seller benefits from future growth.
Key contractual terms include the recipients of the award, the accounting assumptions used and the agreed time period.
Evaluation costs are the fees a company pays for discovering defects in its products before they are delivered to customers; they are a form of quality control.
The articles of association can be seen as a user manual for the company, defining its purpose and outlining the methodology for carrying out the necessary day-to-day tasks.
When a company or government agency buys or leases existing manufacturing facilities to launch new manufacturing activities, this is called an investment in existing facilities.
The Code of Ethics sets out the ethical principles of the organization and the best practices to be followed with respect to honesty, integrity and professionalism.