Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
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What is Goodwill?

Goodwill is the value of a business above its identifiable assets, reflecting customer relationships, reputation, brand, and earning power that....

What is a Fiscal Year?

A fiscal year is the 12-month accounting period a corporation uses for financial reporting and tax purposes, and it does....

What is a Family Trust?

A family trust is a discretionary trust that holds assets, often shares of a private corporation, on behalf of family....

What is Estate Planning?

Estate planning is the process of structuring personal and corporate affairs so that wealth transfers to the right people, in....

What is an Estate Freeze?

An estate freeze locks in the current value of an owner’s assets and transfers future growth to the next generation....

What is the difference between Eligible and Non-Eligible Dividends?

Eligible dividends are paid from income taxed at the general corporate rate and receive a higher gross-up and personal tax....

What is a Dividend Refund?

A dividend refund returns a portion of the tax a private corporation paid on investment income when it pays taxable....

What is Depreciable Property?

Depreciable property is a business asset whose cost is written off over time through Capital Cost Allowance, because its useful....

What is a Deemed Dividend?

A deemed dividend is an amount the CRA treats as a dividend for tax purposes even though it was never....

What is a Corporate Reorganization?

A corporate reorganization is a restructuring of how a business is legally held or operated, changing the corporate structure, share....

What is a Canadian-Controlled Private Corporation (CCPC)?

A CCPC is a private corporation incorporated in Canada that is not controlled by non-residents or public corporations, and the....

What is Capital Property?

Capital property is any asset held for investment or long-term use whose disposal produces a capital gain or loss rather....