ROI Formula

Return on investment (ROI) is a measure of the profitability of a particular investment.

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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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Key Man Clause

In an investment context, a key man clause is a contractual clause that prohibits an investment firm from making new investments in certain situations.

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.

Profit Margin Formula

Profit margins are as vital to businesses as they are to financial investments and stocks. Similarly, profit margins form an essential element of accounting practices. Margins also mean different things in these three spheres: commerce, accounting, and investing.