Category Archives: Chapter 7-12 Terms

Used in real estate, it refers to a completely unoccupied building – one that was built but never had any tenants, so you can see in one window and out the other on the opposite side of the building. In … Continue reading →

A type of public offering where individually owned businesses suddenly combine their ownership into a new public company. In 1992, I met with several other auto recyclers about such an offering, which is very difficult to complete, and I quickly … Continue reading →

This is a term for hiring a specialist in a given area, or persons with specific skills or experience. In most jobs, applicants are interviewed, sized up for their qualifications and then likely given some training. With surgical hiring, you … Continue reading →

The meaning is pretty obvious, but it’s an important thing to keep in mind.

Acronym for “full-time equivalent.” It’s used to compare and understand the actual number of full-time employees and total cost per employees. Two part-time employees, who work 20 hours per week, for instance, would be counted as one FTE.

A dummy director acts and votes according to the wishes of another party who is not a member of the board. He is only a figurehead with no true control, but he is still liable; it might be someone who … Continue reading →

This action doesn’t impact earnings; likely a bad thing. Everyone likes to move the needle and make earnings go up. It’s kind of like going faster in a car, it’s more fun. (For a guy, anyway, according to my wife.) … Continue reading →

An existing site or plant that has been updated for use rather than constructing a new plant at a raw site. It can also be a site or plant that was previously used by a related industry. For instance, a … Continue reading →

A physical business presence. In this era of e-businesses, bricks and mortar refers to a business or a part of a business that can be seen, visited or touched. It’s used in contrast to a business that has no physical … Continue reading →

In contracts, it’s the effort to verify information and to research the validity of documentation and material facts. It’s a required standard of care that a professional is expected to maintain. Essentially, buyers review, audit, sample, and verify that the … Continue reading →