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Home Dictionary F Family Limited Partnership (FLP) A family limited partnership (FLP) is a business or holding company owned by two or more family members. There are advantages and disadvantages of creating a sole proprietorship. In a family limited partnership (FLP), each family member can buy a share in the business for potential profit. There are two types of partners in FLP: general partners and limited partners. FLP are often created to preserve the wealth of the family, which allows tax-free transfer of assets, real estate and other material values. 8(a) Firm
September 25, 2022 8(a) firms are small businesses that are owned and controlled by socially and economically disadvantaged individuals. Articles of Incorporation
September 25, 2022 The memorandum of association is the documents filed with a government body (usually the state), which means the creation of a corporation. Catalog of Federal Domestic Assistance (CFDA)
September 25, 2022 The Federal Home Care Directory (CFDA) was a comprehensive listing of federal assistance programs. Engagement Letter
September 25, 2022 A letter of engagement defines a business relationship between two parties. Grandfather Clause
September 25, 2022 A legacy clause is a provision that allows people or organizations to follow the old rules that once governed them instead of the new ones, often for a limited time. Hold Harmless Claus
September 25, 2022 An indemnity clause is used to protect a party to a contract from liability for damage or loss. Licensing Fee
September 25, 2022 A license fee may refer to a state fee for working in a certain profession or for running a certain type of business. Multiple Employer Welfare Arrangement (MEWA)
September 25, 2022 The Multi-Employer Social Security Facility (MEWA) is a way for a group of employers to pool their resources to provide their employees with the best health insurance options. Musharakah
September 25, 2022 Musharakah is a joint partnership arrangement in Islamic finance in which profits and losses are shared. Predatory Pricing
September 25, 2022 In a predatory pricing scheme, prices are set low to try to drive out competitors and create a monopoly. Small Business Administration (SBA)
September 25, 2022 The Small Business Administration is a government agency dedicated to supporting and promoting the economy by helping small businesses. Statute of Limitations
September 25, 2022 The statute of limitations is a law that establishes a maximum period during which parties to a dispute must initiate legal proceedings. Vicarious Liability
September 25, 2022 The term “vicarious liability” refers to situations where one party is liable for the negligent actions of a third party for which it is liable. Voidable Contract
September 25, 2022 A voidable contract is a contract that can be terminated or modified for qualified legal reasons. Voting Trust Agreements
September 25, 2022 Voting trust agreements allow shareholders to transfer their voting rights to the trustee, effectively giving the trustee temporary control of the corporation. 83(b) Election
September 25, 2022 Choice 83(b) is an Internal Revenue Code (IRC) provision that gives an employee or startup founder the ability to pay taxes on the total fair market value of the restricted shares at the time of grant. Bootstrap
September 25, 2022 Bootstrapping is the creation and management of a company using only personal finance or operating income. Business Process Outsourcing
September 25, 2022 Business Process Outsourcing (BPO) uses third party vendors or subcontractors to perform certain parts of their business operations. Carriage and Insurance Paid To (CIP)
September 25, 2022 Carriage and insurance paid until when the seller pays the freight and insurance to deliver the goods to the party appointed by the seller at the agreed place. Cost, Insurance and Freight (CIF)
September 25, 2022 “Cost, insurance and freight” (CIF) is an international trade term that applies only to goods shipped by water or ocean. Cottage Industry
September 25, 2022 Home-based production is a small-scale production, often performed outside a person’s home. Crowdfunding
September 25, 2022 Restrictions apply to who is allowed to fund a new business and how much they are allowed to contribute. Customer to Customer (C2C)
September 25, 2022 Client to Client (C2C) is a business model that allows clients to trade with each other, often in an online environment. Deliverables
September 25, 2022 The word “results” is a project management term describing the quantifiable goods or services to be delivered after the completion of the project. Employers' Liability Insurance
September 25, 2022 Employers’ liability insurance covers companies against expenses and claims from employees that are not covered by workers’ compensation.