Limited Partner

A limited partner owns a stake in a business partnership with limited liability. They work with at least one General Partner who manages the day-to-day operations of the business. They expect returns from General Partners.

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This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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Asset Deal

During mergers and acquisitions (M&As), buyers may choose to purchase a company’s underlying assets instead of its stock (shares). These transactions are called asset deals.

Common Stock

Common stock represents part ownership in an incorporated entity. A company’s common stock can be found under the “stockholders’ equity” section on the company’s balance sheet. Common stock is a US term, in the UK we would say “Share capital”.

Net Operating Income Formula

Net operating income (NOI) is a formula real estate investors use to determine the profitability of a potential real estate investment or other investment. The net operating income formula subtracts your annual gross operating income from your annual operating expenses to see how much cash flow a property or business generates.