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Fiduciary liability insurance protects an organization's fiduciaries (such as directors, officers, and trustees) against claims made by employees or other stakeholders for alleged breaches of fiduciary duty.

An EO transaction in which < 100% of the company stock is sold to employee owners, whether through installation of a trust, or a new worker-owned co-op. This has strategic and taxation considerations.

Junior capital defines any non-senior type of debt capital, including mezzanine debt or equity; it is at the risk capital level and generally not secured by assets, i.e., if the company does not achieve its goals the investor’s capital has a high degree of risk of loss.

Earnings in a regular corporation are double-taxed—the corporation pays income tax on the net earnings, and then the shareholders pay income tax when they receive dividends on those earnings. In contrast, under Subchapter T of the Internal Revenue Code, a cooperative can avoid some of the traditional corporate double-tax.

Any fees or dues required in order for a company to become EO, e.g., the cost of a formal 3rd party valuation.

The price the EO plan paid for the shares when first acquired, including it they were acquired with debt and then released later at higher or lower values. Four methods that can be used in computing the cost basis of the employers securities in the ESOP.

A corporation is a legal entity that is separate and distinct from its owners. Corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.

Est. 1953, SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation’s only go-to resource and voice for small businesses.

A private pass-through business that is owned wholly or partly by an ESOP, and as a result, the company’s gains rebound to the benefit of its employee-owners.

Pertaining to unique EO considerations for businesses in Washington state such as tax or other incentives

A US Government agency whose mission is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and to enforce the law with integrity and fairness to all.

In a seller financed business sale, the seller allows the buyer to pay off a portion of the price of the business over time with interest.

The evaluation of different types of employee ownership by a selling owner, and making a choice between them based on the relative strengths and weaknesses of each type.

an arrangement in which the company that sells an asset can lease back that same asset from the purchaser

A "poison pill" is a defensive strategy used by companies to deter hostile takeovers. It sets a trigger point, typically a threshold of stock ownership, beyond which any acquiring shareholder faces significant dilution of their stake.