An ESOT, or Employee Share Ownership Trust, is a type of employee benefit plan designed to provide employees with an ownership interest in the company.
An Employee Stock Ownership Plan (ESOP) is a program that encourages employees to purchase stock in their company, thus allowing them to participate in the management of the company. Companies with such plans may take tax deductions for ESOP dividends passed on to participating employees and for dividends that go to repay stock acquisition loans.
A general partnership is a business arrangement where two or more individuals share ownership and management, and each partner is personally liable for the business's debts and obligations. Income and losses are passed through to the partners.
Minority Business refers to enterprises owned and operated by underrepresented groups, often experiencing unique challenges such as lack of financing and management experience. Government initiatives, including earmarking a percentage of government contracts, aim to support their growth and success.
Original equity refers to the amount of cash initially invested by the underlying owner in a venture or business. It is distinct from sweat equity and capital calls.
An owner-operator is an individual who owns as well as operates their own business or the equipment used in the business for the purpose of earning income. For example, truck drivers often operate as owner-operators of their trucks.
A passive investor is an individual or entity that invests money but does not actively manage the business or property in which they invest. They typically seek long-term investment returns with minimal day-to-day involvement.
A proprietor is an owner of a property or business. In the context of a company, the owners are referred to as shareholders.
An unincorporated business owned by a single person, where the individual proprietor has rights to all profits and responsibilities for all liabilities. The income is reported on Schedule C of Form 1040 and is subject to self-employment tax.
Residual Equity Theory emphasizes the rights and interests of ordinary shareholders, viewing them as the real owners of a business. It reflects in earnings per share, aiding shareholder investment decisions. This theory positions itself between the proprietary view and the entity view of a company.
A sole proprietor is an individual who owns and operates an unincorporated business alone. Typically, a sole trader refers to an individual in business independently, while a sole practitioner is a professional practicing on their own.
A wholly owned subsidiary is a company whose entire stock is owned by another company, known as the parent company or holding company. This structure provides the parent company with complete control over the subsidiary.
