Q: What are some of the main vocabulary words used in Business Associations and Entities?
Expected Return– What you think that you will get back from an investment
Ex Ante– Predictive; looking ahead; preventative measures that you put in the charter or it is found in the statute.
Ex Post– Looking back; hindsight; solving problem after it has occurred usually through court proceedings.
Human Capital– personal skills, abilities, time, and effort
Money Capital– property that is valued in terms of money
Team Specific Investment– property or services which have a higher value when used within a specified group of venturers
Implicit Team– Venturers who operate separate businesses which engage in joint production by contract. EX: lead company and plastic company who depend on each other to make pencils.
Opportunism– Exercise of self-interest for personal gain. This is the selfish investment
Discreet Contract – An AGREEMENT WHERE PARTIES SPECIFY ALL OBLIGATIONS AT THE OUTSET. This is the way it is going to be…outcome determinative
Relational Contract – An agreement where parties create a structure to resolve future issues. It tells you the framework by which it will tell you the outcome.
Risk Averse– Preferring safety; not taking any chances
Risk Preferring– Unafraid of chances; gambling
Risk Neutral– Unaffected by the element of chance or safety
Are you a lawyer? Or, do you just knoooow the answer?
We have located some similar legal questions and legal question categories. Check out these challenging questions that askquestions about Entities and are similar to What are some of the main vocabulary words used in Business Associations and Entities?. Also, we have included a list of some of our more popular legal question categories. These categories are based on what everyone is asking and answering.