Times Interest Earned Ratio

Times interest earned (TIE) ratio is a financial ratio that signals the company’s ability to pay off its debt.

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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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Joint Venture

A joint venture is an arrangement between two or more individuals or companies to work towards a mutual business goal or project. The parties may choose to remain as separate entities or form a new business entity.

Convertible Shares

Convertible preferred shares, or convertible shares, is a form of hybrid investment that is most commonly offered to venture capitalists that invest in startup businesses. Also known as convertible stock in the US market.

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.