Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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Purchase price allocation is the process of assigning the total transaction price across the specific assets and liabilities acquired, a....
A purchase and sale agreement is the definitive legal contract that governs a business transaction, setting out every binding term,....
Pre-sale due diligence is the process of reviewing a business before a buyer does, to identify and resolve the issues....
The profit gap is the difference between what a business currently earns and what it would need to earn to....
Post-exit planning is the preparation for life after the business, covering personal financial management, wealth deployment, identity, purpose, and legacy....
Phantom equity is a compensation arrangement that gives key employees the economic benefit of ownership, a share of business value....
A personal financial plan is the comprehensive blueprint for how wealth, including business exit proceeds, will be invested, managed, and....
Profitability improvement is the deliberate process of increasing the percentage of revenue that converts to profit, through pricing discipline, cost....
The PPSA is provincial legislation that governs how security interests in personal property, equipment, receivables, and inventory are created, registered,....
A personal guarantee is a commitment by a business owner to repay a corporate debt personally if the business cannot,....
A prescribed rate loan is a loan from a higher-income spouse or family member to a lower-income one at the....
A personal services business is a corporation the CRA treats as a disguised employment relationship, typically an incorporated contractor providing....