Subsidiary
Frequently abbreviated in conversation as a “sub,” a subsidiary is a company owned or controlled by another company. The company that owns the sub is called a “parent” company or sometimes a holding company.
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Arm’s-Length
In an arm’s length transaction, both parties to a deal voluntarily enter into the transaction, they each act in their self-interest, and have equal bargaining power. Arm’s-length suggests that there is distance between the parties and they are not secretly trying to benefit one of the parties with a deal that only appears to have…
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Dividend
Dividends are monetary payments made by corporations to their shareholders
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Good Faith
There is no single definition of good faith but it generally means honesty and without fraudulent intention. For example, under state laws, parties to a contract are expected to treat each other in good faith regardless of whether the contract specifies a duty of good faith. That is, one party cannot deceive another party or…
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Usurp
To usurp means to take something without a right. When a business partner usurps for himself a business opportunity that belongs to the partnership he has breached his fiduciary duties.