Business Law Terms and Definitions

Cash Flow Projections A month-by-month future projection of income and expenditures over a period of time, usually a year. The projections for an existing business are based on current cash flow patterns. Equity Partnership A limited partnership arrangement for providing start-up and seed capital to businesses. Debt Capital Business financing that normally requires periodic interest payments and repayment of the principal within a specified time. Adjusted Gross Income Also known as AGI, it's your individual income before personal exemptions or standard or itemized deductions. Accounting Procedure Similar to accounting method, but applied to more routine issues. For example, the method of computing depreciation, handling small capital expenditures. Factoring A method of raising working capital by selling your business's accounts receivables to a bank at a discounted rate. The bank then manages and collects the money due. Articles of Incorporation Legal document filed with the state, which sets forth the purposes and regulations for a corporation. Each state may have different rules/requirements. Profit Profit the excess of revenues over expenses. Accelerated Depreciation A method of calculating depreciation where deductions are higher in the early years of the asset's life. Contrasted with straight-line depreciation where deductions are equal for each year of the life of the asset. Cash disbursements Cash disbursements money paid out by the business owner for goods and services received.

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

	Did You Know?
	The Franchisor Be Taken To Court In The Franchisee's Home State That depends on your state's law and, if consistent with state law, the franchise agreement. Many franchise agreements provide that all disputes must be settled out of court in arbitration, precluding any lawsuits, unless your state's law does not permit that type of provision.