Archive for the ‘Daily Definition’ Category

A Duty is…

Tuesday, August 18th, 2009

A duty is a tax levied on products that are imported or exported from a different country. If a manufacturer wants to ship his product to another country and sell it there, he may have to pay a duty for sending it out of the first country and another duty for sending it into the second, depending on the tax laws in place in each country.

A CEO is…

Tuesday, August 18th, 2009

A CEO is the Chief Executive Officer of a corporation; hired by the Board of Directors, the CEO is the person who is in charge of the strategic direction, management of operations, and financial results of the company.

A Stockholder is…

Tuesday, August 18th, 2009

A stockholder is another name for a shareholder or a stakeholder. It’s a person who owns shares of a company’s stock.

Qualifying Distributions are…

Monday, August 17th, 2009

Qualifying distributions are payments a private foundation makes to meet its payout requirements. Qualifying distributions can take the form of grants, loans, administrative expenses, and so on.

A Grantmaker is…

Monday, August 17th, 2009

A grantmaker is a person or an organization that donates money (in the form of grants) to a charitable organization. It’s basically synonymous with donor and can refer to foundations or corporate giving programs donating huge amounts of money, or a just a regular person making a minor donation to a local charity.

Gross Profit is…

Monday, August 17th, 2009

Gross profit is an accounting calculation of expenses subtracted from total sales.  In other words if a company sold $100 worth of pencils in a month and it cost them $20 to manufacture, sell and pay for labor, then the gross profit is $80.

A W-9 is…

Monday, August 17th, 2009

A W-9 is an IRS form that companies use to collect and verify tax information from freelance and other temporary workers. It’s just a tax record and verification for the company so it can keep track of everyone who it has paid – the IRS wants to know about a person, even if he or she worked for only two days.

A Board of Directors is…

Monday, August 17th, 2009

A Board of Directors is a group of individuals elected by the shareholders of a company to represent the interests of the shareholders and also to govern the affairs of a corporation. The Board is an overseer not a manager of the corporation.

Disinflation is…

Monday, August 17th, 2009

Disinflation is when the rate of inflation slows down. Inflation is still happening (it’s not zero or negative), it just is not as strong as it was before.

A Public Company is…

Monday, August 17th, 2009

A public company is a company that is traded on a stock market and its shareholders have a say in how the company is run.