Small Business Regulations
The Essentials of Small Business Regulations
What is a non-government organization?
A non-governmental organization (NGO) is a group that functions independently of any government. They are usually non-profit and may run budgets of millions or up to billions of dollars each year. They play a major role in international development, aid, and philanthropy. NGOs rely on a variety of funding sources, from private donations and membership dues to government grants. Some well-known NGOs include the American Red Cross, the Salvation Army, and Amnesty International.
How do NGOs net funding?
NGOs rely on a variety of sources for funding projects, operations, salaries, and other overhead costs. Fundraising efforts are important for the NGO’s existence and success. Funding sources include membership dues; the sale of goods and services; private sector, for-profit companies; philanthropic foundations; grants from local, state, and federal agencies, as well as foreign governments; and private donations.
How do I sell stock in my company?
Many business owners sell ownership in their company through shares of stock. Different options for selling a business include selling to private investors or to employees. There are many steps to selling a business, including determining its value, what your shareholders want, creating a marketing strategy, and getting your business in order for sale. Different options for selling include going public, selling to large private investors, selling to smaller investors, and selling to employees.
How legally binding are letters of intent?
A letter of intent (LOI) may be legally binding, depending on how it is worded and, in some cases, whether a court has determined it is legally binding. To determine whether the letter is legally binding, courts will consider the written expression of intent in the letter and what actions the parties mentioned in the letter take after the letter has been signed. If the two parties have a history of non-binding letters of intent, for example, the court would be more likely to dismiss the letter's validity as a legitimate contract.
How does affirmative action affect business?
Affirmative action is a policy to promote equal opportunity in the workplace or in education. The rules are intended to level the playing field for groups that have been historically discriminated against or overlooked in the workplace because of race, gender, sexual orientation, disability, and/or other factors. Affirmative action is often considered a means of correcting historical discrimination against these groups. Businesses that contract with the federal government are required to have affirmative action programs.
Catalog of Federal Domestic Assistance (CFDA)
The Catalog of Federal Domestic Assistance (CFDA) was a comprehensive list of federal assistance programs. CFDA detailed the federal grants, loans, scholarships, counseling, and other assistance programs available to the American public. CFDA recipients included corporate and government agencies, United States territories, and members of the American public.
An engagement letter defines a business relationship between two parties. A letter of engagement limits the responsibilities of the company, directly or by inference. A wide range of businesses including attorneys, auditors, accountants, and consultants use engagement letters routinely, whether their clients are individuals or large corporations.
In a predatory pricing scheme, prices are set low to attempt to drive out competitors and create a monopoly. Consumers may benefit from lower prices in the short term, but they suffer if the scheme succeeds in eliminating competition, as this would trigger a rise in prices and a decline in choice. Prosecutions for predatory pricing have been complicated by the short-term consumer benefits and the difficulty of proving the intent to create a market monopoly.
Family Limited Partnership (FLP)
A family limited partnership (FLP) is a business or holding company owned by two or more family members. Within a family limited partnership (FLP), each family member can buy shares in the venture for a potential profit. FLPs are often established to preserve a family's generational wealth, allowing for tax-free transfers of assets, real estate, and other wealth.
Stockholder Voting Rights
Stockholder voting rights allow shareholders of record in a company to vote on certain corporate actions, elect members to the board of directors, and approve issuing new securities or payment of dividends. Shareholders cast votes at a company's annual meeting. If they cannot attend, they may utilize a proxy vote to convey their wishes. Typically common shares carry one vote per share, while preferred shares have no voting rights.
Contra Proferentem Rule
The contra proferentem rule is a legal doctrine in contract law that can be enforced at the local, state, or federal level. The contra proferentem rule places fault on a party who creates or introduces an ambiguous contract clause for their own benefit. Contra proferentem rulings usually require the intermediation of a court to change a contract’s interpretation or results.
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U.S. Department of State. “Non-Governmental Organizations (NGOs) in the United States.” https://documents1.worldbank.org/curated/en/814581468739240860/pdf/multi-page.pdf
Nolo. "Is Your Nonprofit Giving Away Things It Should Charge For?" https://www.nolo.com/legal-encyclopedia/is-your-nonprofit-giving-away-things-it-should-charge-for.html