A related party transaction is an arrangement between two parties that have a prior business relationship.
Some, but not all, related party transactions involve a potential conflict of interest and are subject to scrutiny by regulators.
Uncontrolled misuse of related party transactions can lead to fraud and financial ruin for all parties involved.
US regulators ensure that transactions with related parties are free from conflict and do not adversely affect the shareholder value or earnings of a corporation.
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.