Definition: To constitute a valid and binding meeting, the minimum number of members which must be present to transact the business, is termed as Quorum. Hence, it is a basic criterion for attendance which needs to be fulfilled, to make the proceedings legal. Further, the members should have a vested interest in the company. The members of the company are required to be … [Read more...] about Quorum
Corporate Veil
Definition: The term 'Corporate Veil' is a combination of two words 'corporate' which means a 'body corporate or company' and 'veil' which means a 'cover or shield'. Therefore, it implies the shield of protection that lies amidst the actions of the corporation and the actions of its members. Once the company is incorporated, it becomes a separate legal entity, i.e. the … [Read more...] about Corporate Veil
Trade Union
Definition: Trade Union is also referred as Labour Union, indicating an organized union, i.e. association of the labours, employed in a trade, industry, business or factory, etc who come together to achieve common goals, i.e. improving bargaining power on wages and working conditions. Basically, trade unions are the legal representatives of the group of wage earners. They … [Read more...] about Trade Union
Warehouse
Definition: Warehouse refers to the place where surplus goods are stored in a systematic manner so as to keep their quality, value and usefulness intact. Warehouses facilitate in keeping a proper record of the items as to where they are stored, their time of arrival, until when the goods have been there and the quantity of stock in hand. It is the venture which is … [Read more...] about Warehouse
Mistake
Definition: In contract law, a mistake refers to the innocent belief about something by one or both parties at the time of entering into a contract that certain facts are true, resulting in a misunderstanding in the parties. It is an unintentional act resulting from ignorance, forgetfulness or inattentiveness. It is among the five elements that vitiate free consent, the … [Read more...] about Mistake
Ratification
Definition: Ratification is one of the modes of creation of a contract of agency. In ratification, a person who is not authorized professes to act as an agent of another person or an agent who is duly appointed, performs an action on behalf of the principal which is beyond his/her periphery and the principal does not have any knowledge of the same, then in such a case, the … [Read more...] about Ratification
Void Agreement
Definition: Void Agreements refers to those agreements which are legally unenforceable. So, it does not amount to any rights or obligation as per law. These do not have any legal effect and so they cannot be enforced under the court of law, as well as it does not give any rights to the immediate parties. Agreements Expressly Declared Void There are certain agreements which … [Read more...] about Void Agreement
Financial Analysis
Definition: Financial Analysis, as the name itself signifies, is a process of critically studying, reviewing and interpreting the information provided in the company's financial statements so as to understand the same and take better decisions regarding the firm's operations. Financial Analysis is used to evaluate the present and past financial position of the enterprise … [Read more...] about Financial Analysis
Verification
Definition: In general, verification refers to the confirmation of truth. In auditing, the term 'verification' refers to a process followed during audit program to check the accuracy of the Balance Sheet items, not just by scrutinizing the documentary evidence at hand, but also checking that the assets and liabilities recorded in the balance sheet exist in reality. Meaning … [Read more...] about Verification
Competitive Advantage
Definition: Competitive Advantage, as the name signifies the upper hand of a business entity over its market rivals, which is the result of the company's strategies and continuous efforts. It represents the combination of distinguishing features of the firm and its products, which has value to the target customers and are considered peerless by them. In finer terms, … [Read more...] about Competitive Advantage