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A B C D E F-H I J-L M N-O P Q-R S T U-Z Quorum The minimum amount, typically a majority, of voting power that must be present at a meeting for actions to be valid. Chapter 9 and Chapter 15.
Raider An entity that seeks to obtain control of another entity against the wishes of the other entity's management. Chapter 17.
Ratcheting The risk that a principal will increase an agent's work without increasing the agent's recompense. Chapter 4
Ratification A doctrine under which a principal is liable for an agent's actions, when no actual or apparent authority exists. Ratification occurs when the principal manifests assent to the agent's actions, thus electing to treat the action as authorized. Chapter 4.
Rational self-interest The paradigm of human behavior in classical economics. It posits that people, in economic settings, act logically to acquire as much for themselves as possible. Chapter 3.
Real options A business's relations with others, viewed as options. Real options are distinguished from financial options and hedges. See Option. Chapter 3.
Reasonable expectations test A test for shareholder oppression. It focuses on the minority shareholders's reasonable expectations in committing their capital to the particular enterprise. If conduct by the majority substantially defeats those expectations, the minority have been oppressed. Chapter 16.
Receivables skim A financial fraud in which the perpetrator diverts money customers pay to the business before that money is recorded by the business. Chapter 12.
Recognition An event such as a sale that requires a taxpayer to report gain or loss. Chapter 17.
Record date The date on which the shareholders entitled to receive a dividend or to vote at a meeting are fixed. Chapter 7.
Redemption The right of the corporation, contained in the articles of incorporation, to repurchase shares of a particular class or series. Chapter 6.
Registration statement The statement required to be filed with the SEC before a corporation may offer securities to the public. Chapter 6.
Regular meeting A periodic (e.g., monthly) meeting of a board of directors. Chapter 9.
Regulation D An SEC regulation that exempts certain stock sales by a corporation from registration requirements. Chapter 6.
Regulatory risk The possibility that a government might impose unanticipated regulations. Chapter 3.
Reinvestment risk The possibility that a lender will not be able to reinvest the loan principal at equally favorable terms when the principal is repaid. Chapter 6.
Renounce An agent's unilateral ending of the agency relationship. Chapter 4.
Representativeness A heuristic in which the likelihood of A being related to B is determined by how closely A resembles B. Chapter 3.
Reputational intermediaries A person or entity that vouches for one entity's merits to another entity. Chapter 14.
Reservation price The lowest price at which a seller would sell an asset or the highest price at which a buyer would buy an asset. Chapter 17.
Respondeat superior The doctrine by which a principal is liable for an employee's tort committed within the scope of employment. See Vicarious Chapter 4.
Restitution The doctrine by which a principal is liable to third parties when 1.) the principal is unjustly enriched by the agent's actions and 2.) those actions are not within the agent's actual or apparent authority. Chapter 4.
Restrictions on transfer Limitations on a shareholder's power to sell, give, bequeath, or retain ownership of shares. Chapter 7.
Retired Reacquired shares that are not held as treasury shares. Chapter 7.
Reverse stock split An amalgamation of shares at a fixed ratio into fewer shares. Chapter 7.
Reverse triangular merger A merger of an acquiring corporation subsidiary with and into the target corporation. Chapter 17.
Revlon duties The directors' duty, imposed by Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc., 506 A.2d 173 (Del. 1985), to act reasonably to seek the transaction offering the highest value reasonably obtainable in the sale of corporate control. Chapter 17.
Revoke The principal's unilateral termination of the agency relationship. Chapter 4.
Rhino Money.
Risk The possibility that something different than expected will happen. Chapter 3.
Round lot The typical trading unit of 100 shares. Chapter 7. |