A shareholder is an individual or legal entity that has the highest risk with investment in an incorporated business. The individual/legal entity exchanges financial investment for some form of stock thus creating a legal relationship whereby the investor is known as the shareholder. The end goal is a greater than normal return on the financial investment.

Mission Statement

Mission Statement

A mission statement is a written document identifying the businesses’ primary reason for existence. It should convey the core values and the principles of the company. It should be reviewed with staff frequently to remind everyone of the chief goals of the company.  

Shareholder Dynamics in Small Business

Shareholder Dynamics

The majority of small businesses are owned by a single individual. An additional pool is family owned or controlled. The balance usually involves friends or relatives that are passive in ownership. These forms of ownership create some interesting shareholder dynamics and if not thought out, can create some legal and financial issues in small business when a life changing event occurs. 

Long Term Debt – Explanation and General Understanding

Long-Term Debt

In the arsenal of capitalizing a business operation, long term debt serves as one of the primary sources of capital. If you are an owner of a small business, you need to understand the relationship this source has to the overall financial status of the company. Too much debt and the owner is burden by the cash outlays to service.

Piercing the Corporate Veil

Piercing the Corporate Veil

When shareholders invest into a corporation, there is an expectation of limited losses amounting to the financial investment made. However, if the company is not properly run, officers, directors and shareholders are exposed to the blade of the law. This is known as piercing the corporate veil. Therefore it is critical for any shareholder, director, or officer of a small corporation to understand what is required to protect your personal assets from exposure to creditors and the long arm of the government.

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