Business Law Terms and Definitions

Equity Partnership A limited partnership arrangement for providing start-up and seed capital to businesses. Current liabilities Current liabilities debts that must be repaid in one year or less. I-9, Employment Eligibility Verification Employers are required to have all employees and owners complete a form I-9 as proof of eligibility to work in the U.S. Venture Venture undertaking of a business that involves some speculation or risk. Contingent Liability A potential obligation that may be incurred dependent upon the occurrence of a future event. Two examples are: (1) the liability of an endorser or guarantor of a note if the primary borrower fails to pay as agreed and (2) the liability that would be incurred if a pending lawsuit is resolved in the other party's favor. Sole proprietorship Sole proprietorship legal structure that has one person as the owner. Marketing Marketing the activities associated with buying and selling a product or service. The 4 Ps (product, place, price and promotion). Equity Business owners investment in the company. Cash flow Measure of how well a business manages its inflows and outflows of cash for a given period of time. It shows the borrower's ability to repay the loan. Balance sheet Statement, which gives a picture of the business position at a given point in time. It shows what a business owns (assets) and what the business owes (liabilities).

Contact our Florida Business Lawyers and obtain a free case review!

	Did You Know?
	All of your important business agreements must be in writing. All of your important business agreements must be in writing. Oral agreements are usually not enforceable, and leave you with no recourse for compensation or legal action. Make sure your contracts are well thought out, drafted in your favor and give you flexibility and protection.