101 sobre la estructura de una Corporación General
Filed Under: 101, Blog Posts in Spanish, General Corporation
Tags: 101, General Corporation, Spanish
La Lajmdcm La Sociedad Anónima (Corporación) de Delaware ha sido la forma más fuerte en organización de entidades en los Estados Unidos desde finales de los años 1800 cuando las entidades importantes, como los ferrocarriles, la Standard Oil y DuPont, vieron necesaria la organización en las estructuras organizativas que se destinarían a la gobernanza de la empresa, a medida que crecían más allá de la vida de sus fundadores famosos. La Corporación General está perfectamente diseñada como un vehículo para la incorporación al mundo empresarial, y también proporciona una manera de reunir capital, según sea necesario durante toda la vida de la empresa.
En su forma más simple, la Corporación General consta de tres niveles de poder; los accionistas, los directores y los oficiales. La Asamblea de Accionistas “ADUEÑAN” la empresa. Los directores “MANEJAN” la empresa y los oficiales”CORREN” la compañía día a día. Los Estatutos de la empresa establecen las facultades y los límites del poder en cada una de las gradas. Cada grupo puede tener prioridades distintas y podrian devatir de vez en cuando. Cuando uno sube de nivel en contra de los otros, una batalla de adquisición puede sobrevenir. Batallas de adquisición son habitualmente peleadas en la Corte de Delaware de la Cancillería. En esta corte de negocio único un solo juez decide el caso. No hay jurados, ni tribunales, ni 12 hombres en pugna. Un juez determina rápidamente qué parte deberá prevalecer de acuerdo a los 200 años de las leyes y los precedentes legales. Se dice que los Cancilleres Tribunales respetan las decisiones de buena fe de los administradores sobre las prioridades de beneficio de los accionistas, pero la mayoría de los accionistas en general, pueden elegir una nueva junta directiva, en caso de no agradarles la que actualmente tienen.
El “Reglamento” acerca de cómo estas tres categorías interactúan entre sí, está contenida en tres bases de conocimiento general. El “código”, que es la norma legal aprobada por la Legislatura del Estado, en este caso llamada “Ley General de Sociedades de Delaware” (DGCL), la “jurisprudencia” dictada por la Corte de Delaware de la Cancillería y el Tribunal Supremo de Delaware en los últimos 200 años y en las sentencias “Carta”, que son las decisiones judiciales individuales en una miríada de pequeños detalles que surgen en un caso judicial.
Los accionistas tienen concedidos dos “derechos” que los directores y administradores no reciben: El derecho a votar por La Junta Directiva, y el derecho a participar en los dividendos de la empresa en su parte proporcional cuando la Directiva declaró dividendos. Los accionistas, sin embargo, no pueden operar la empresa. Ellos no pueden intervenir de repente y empezar a decirle a la gente qué hacer. Ellos actúan en juntas, no en forma individual. (A menos que una persona es propietaria de más del 50% de la empresa. En ese caso se podría controlar toda la empresa y los tres niveles de poder.)
La Mesa Directiva también actúa en las reuniones. Directores no suelen actuar de forma individual. Las reuniones deben ser previamente anunciadas a todos los Directores y debe contener la mayoría de los consejeros presentes a ser una reunión legal. El Consejo de Administración toma todas las decisiones importantes en la empresa. Son responsables de la política de la empresa y supervisar a los administradores. Los directores de la compañía determinan lo qué se hará con sus beneficios y controlan la venta de acciones en la compañía. Contratan a la Mesa Directiva de la compañía para dirigir la empresa día a día.
Los oficiales trabajan a placer de la Mesa Directiva, o por contrato con la Junta. Los oficiales son por lo general el Presidente, Vicepresidente, Secretario y Tesorero, pero los estatutos de la empresa pueden preescribir cualquier tipo de funcionarios y títulos, responsabilidades y funciones. Los oficiales son responsables del comportamiento de la empresa y la rentabilidad. Si fracasan, podrian ser despedidos. Si tienen éxito, se convierten en superestrellas.
Esta estructura única, con tres niveles obligatorios de poder, merece un voto de confianza por el éxito de la revolución industrial americana, la economía estadounidense desde 1900 y todo el negocio de Wall Street. Esta estructura difiere de otras formas de organización de empresas como el único propietario o sociedad, que le preceden y la Sociedad de Responsabilidad Limitada que le siguió históricamente.
Si su visión es formar una gran empresa, como Apple o Google o Dell, no se podía elegir un mejor vehículo para tomar el paseo, que una Corporación General (sociedad anónima) de Delaware.
To read the English version of this post, click HERE.
An Explanation of Credit Default Swaps
The financial crisis and government bailout of AIG have focused the public’s attention on credit default swaps, an extremely large but previously ignored segment of the financial market. Despite frequently mentioning credit default swaps, politicians and pundits rarely stop to discuss what credit default swaps are, how they work and what purpose they serve. In this post, we attempt to answer some of those questions.
A credit default swap is a privately negotiated agreement between two parties in which one party (the “protection seller”) agrees to pay the other (the “protection buyer”) a sum of money (the “notional amount”) in the event an event of default occurs with respect to an issuer of debt, such as a corporation, a pool of mortgage or other loans or a state or national government (the “issuer”). An event of default would include the issuer’s failure to pay timely interest or repay principal on debt obligations, among other possible events that the protection seller and protection buyer agree upon. In exchange for the protection seller’s agreement to pay the notional amount upon an event of default, the protection buyer pays the protection seller a periodic fee. The amount of the fee reflects the risk that the protection seller feels it is taking on agreeing to pay the notional amount upon default; the fee, therefore, gives a rough measure of the protection seller’s belief regarding the likelihood of the issuer’s default. If an event of default does not occur upon the expiration of the swap, then the notional amount is never paid and the protection seller has gained in the amount of the fee paid over the term of the swap.
Credit default swaps generally are documented using agreements published by the International Swaps and Derivatives Association, often referred to as “ISDA.” ISDA’s agreements provide a common and consistent set of defined terms and contractual provisions which the parties can vary to suit their needs. Starting with a common set of base agreements which each party has used before permits the parties to a credit default swap to avoid a great deal of confusion and negotiation that they would otherwise face in starting with a new form. In addition, once a protection seller and a protection buyer have negotiated a credit default swap on ISDA’s agreements, they can quickly enter into additional swaps by simply using the same documents, modifying the terms only as needed to suit a particular transaction.
A credit default swap can be used to hedge risk or for speculation. When used for hedging, a credit default swap is similar to an insurance contract. A person or entity that holds the debt of an issuer may be worried that it will default and the debt will either not be repaid at all or the market value of the debt will fall precipitously. As a result, the person or entity would become a protection buyer, paying the fee to a protection seller in order to offset (or “hedge”) the risk of the issuer’s default. The fee paid to the protection seller will lower the debt holder’s returns if the issuer does not default, but entering into the swap will protect the holder if default occurs. Similarly, a homeowner may pay a homeowner’s insurance plan premium for years without incident, but by paying the premium the homeowner is hedging the risk of catastrophic loss.
When used for speculation, the protection buyer does not own any debt of the issuer. The credit default swap is a means by which the protection buyer can “bet” (for lack of a better term) that the issuer will default.
In the buildup to the credit crisis that began in 2008, use of credit default swaps for speculation far outweighed their use for hedging. This is evidenced by the fact that during that period it was common to find that the aggregate notional amounts that would be payable upon a given issuer’s default would equal many times the issuer’s total outstanding debt. In addition, the activities of protection sellers were a key contributing factor to the failure of AIG, among other entities. In the frantic market for credit default swaps leading up to 2008, protection sellers would often agree to pay notional amounts that far surpassed their assets. When a default occurred, such as the default of Lehman Brothers, the protection seller could not make the promised payment, and, without government intervention, the losses could potentially have rippled out to other financial firms reliant on such protection, causing them to also fail.
Tips for Writing a Business Plan
Filed Under: 101
Tags: Business Tips, Entrepreneur
If you are getting ready to start a business, the process of writing a business plan will help you clarify your vision. The final product, too, will help you represent your business to potential advisors, investors, clients, and vendors. Below, I have compiled some resources to get you started.
First, you want a mental map of what a basic business plan includes. Check out www.myownbusiness.org/s2, a website that provides outlines of the business plan and some business plan writing tips. If you decide you want to purchase a few books on the topic, check out http://www.planigent.com/html/books.html, which includes helpful, thorough reviews of some of the more popular how-to-write-a-business-plan guides.
Generally, business plans are at least three sections: one on the business itself, the second on financial data and projections, and finally, a section that includes documents that support the prior two sections. Typically, you will also include a one-page version of your business plan, known as an executive summary or a plan summary. Many advise that you write the summary last. This one-page document includes everything that is in the business plan, but in a succinct version that communicates who you are, what you want to do, how much money you will need, and how much money you project that you can make.
You do have some creative license in designing your business plan. If you decide to maintain the three-section model, the content within each section and the order of that content can vary. In other words, there is not one right structure for a given business plan, but several possible structures. Many books include examples of business plans. You can also go to http://www.bplans.com/sample_business_plans.cfm for a wide range of good-looking business plan models by industry. You may find it most effective to combine several models, to create a structure tailored for your unique business and purposes.
Finally, depending on your strengths and skill set, you may want to seek additional resources to simplify the process and help you make more informed decisions. Specifically, you may decide to look into business plan software programs or professional consultants. Software programs can range from $20 – $150. They are designed to walk you through the writing process and to create a professional-looking finished document. For reviews of business plan software, visit http://www.diybizplan.com/software. As for consultants, don’t be afraid to consult a professional writer and editor, or an accountant. The quality of the finished business plan, like a resume, should be flawless, especially if you plan to share it with outside parties. Equally as important are the numbers, specifically the projections for the first year. If accounting is not your area of expertise, it is may be helpful to find someone you trust to consult.
Ultimately, you and only you can make the creative and intellectual decisions that hold the best business plan results for you. Although the thought of writing a business plan can be daunting, the good news is that there will be no one right answer, but several.
So…The New Y’Know
Filed Under: 101
Tags: George Merlis, Media, Media Training
Last time I took a swipe at the filler phrase “y’know,” which has invaded so many interviews that for some it’s become a reflex, like breathing when answering a question. A colleague of mine reminded me that a couple of years ago we began encountering another useless time-buying verbal gimmick — the word “so.” It began popping up in media training sessions with scientists and engineers. Some of them began their answers to our practice interview questions with, “So…” as in this exchange:
Question: “How will this experiment expand our knowledge of the universe?”
Answer: “So, what we are going to study is…..”
It was so pervasive that a few science and engineering media training participants began every single answer with the word “so.” They were unaware they were doing it until we played back the interviews for our critiques. One confounded scientist, for whom the critique was a revelation, asked, “Why am I doing that all the time?” At the time I couldn’t answer his question, but now I think I know the answer. Scientists, by inclination and training prefer to build to a conclusion. But they know that laymen want a conclusion first, followed by the supporting data.
In fact, during media training sessions I drive home that message using the slogan, “Key Point Up Front.” In other words, we are asking people to do something counterintuitive: to start with what would normally be the end of an answer. Normally, when our scientist is building his argument with peers, he lays out his evidence and when he is going to to deliver his conclusion uses flags the fact with the word “so.” Actually, “so,” used this way is layman speak for “ergo,” which in its original Latin meant “because of,” but was adopted as a synonym for “therefore” in 14th century English. Now when urged to begin with the conclusion, many scientists and engineers instinctively start with “so,” even though they haven’t presented the facts leading up to the conclusion. At a recent gathering I attended, there were a lot of scientists on panels and laymen in the audience and almost every scientist present began many answers with the word, “So….”
Why is this relevant to the business community? Well, lately I’ve noticed the answer-starting “so” creeping into media interviews with businessmen. Perhaps they picked up the habit listening to Nobel prize-winning scientists using the word. Perhaps there is a “so” virus out there. Whatever the reason, I am hearing more and more “so” answers from more sectors of the economy.
Whether you have talking about dark energy or monetary policy or business opportunities in third world countries, starting answer with “so,” is distracting and annoying. First of all, the “so” is totally misplaced and somewhat baffling to the listener, since the basis of the conclusion hasn’t been given. Second, it becomes a cliche like “y’know” and can lead to such overuse that it becomes a distraction — just like “y’know.”
As I pointed out earlier, a lot of perpetrators of “so” responses were totally unaware they were committing the offense. So (sorry, couldn’t resist) how do you know you’ve fallen into the trap and what do you do to get out of it?
I know of only two ways of catching yourself deploying the inappropriate “so.” Ask colleagues to listen for it — a less than reliable solution — or record yourself in conversations and practice interviews and play back the tapes listening for “sos.” If you are a so-er what is the remedy? Incorporate the sense of the question in your answer. If you are rephrasing the elements of the question, it’s virtually impossible to begin an answer with “so.” Back to the example I used earlier:
Question: “How will this experiment expand our knowledge of the universe?”
Answer: “This experiment will expand our knowledge of the universe by studying…..”
What about my mandate for getting your key point up front? Restating the sense of the question doesn’t push the key point all that far back in your answer, AND, importantly, it makes your answer totally self-contained — something the media love. If they can use your answer without their question, they are a giant leap toward a good soundbite or pull quote.
Tips to Avoid Fillers When You are Speaking
If you’ve been following the public pronouncements of Akio Toyoda, the CEO of Toyota Motor, you’ve probably heard him speaking Japanese before the English translation takes over. And you’ve doubtless heard him utter the word ano. A lot. In fact, Mr. Toyoda, says ano so much you might think it’s Japanese for a really common word like “the” or “it.”
In fact, ano means “there” — as in “that Prius over there.” But like many Japanese speakers, Mr. Toyoda uses ano not as a word, but as a filler, a meaningless sound meant to buy time in a sentence. You can tell ano is being used as a filler without knowing another word of Japanese; when the meaning is “there,” as in “that one over there,” ano is short and choppy. When it’s buying time in a sentence, it’s pronounced anoooo. The longer the o sound, the more time the speaker is buying.
The American equivalents of anooooo are ummm and y’know. We hear them in interviews all the time. The other day on the NPR program “Marketplace,” I heard a business economist use y’know a distressing number of times. To me, y’know is a particularly offensive filler word. Generally, when someone throws in a y’know, I DO know, so they are inadvertently insulting me by asking me if I can follow their line of reasoning. You know (sorry, couldn’t resist) that y’know is just a nervous time-buying expression when someone deploys it two and three times in a single answer.
Businessmen who are perfectly adept at delivering a report from just a handful of notes on index cards sometimes fall back on repeated y’knows when answering questions. And y’know is contagious. If an interviewer peppers his questions with y’knows, then an interview subject is far more likely to use the expressions — and, unhappily, visa versa.
Y’know is an awkward crutch that can undermine a business spokesperson’s authority, so the question for those of us who do presentations and answer media and public questions is how to we banish that particularly annoying English version of anooooo?
First, we have to realize we have the bad habit. During media training sessions, clients often learn they have developed the habit only when I play back a practice interview to critique their performance. The expression has become a reflex; almost like breathing, and speakers are unaware they’re saying y’know.
If you’re not in a media training session, how can you learn if you’re using y’know? The best way to find out is to record a conversation with another person, play it back and see if you have the habit.
If you do find yourself afflicted, I have found that preempting the filler often helps. For example, you can start a response with “You know, the most important thing to realize is….” By using the fully spelled out “you know,” you put yourself on mental notice not to use the filler conjunction y’know. Using “you know,” that way also sets you up to incorporate the sense of the question in your answer — and repeating the sense of the question is a great time-buying device that often gives you that nanosecond you need to decide what your answer really is. One you’re on course, you’re less likely to fall back on time-buying gimmicks like y’know.
Incorporating the sense of a question in an answer also makes your answer self-contained — which is especially valuable in media interviews. But the most important piece of advice I can give is to have an agenda ready to deploy in any sort of Q&A session — whether it’s with colleagues, the media or the public. If you have an agenda, incorporate the sense of the question into your answer and from time to time begin a response with “You know,” you’re unlikely to find yourself resorting to y’know. Or hmmmmm. Or, if you happen to be doing an interview in Japanese, anoooooo.
Finally, before any interview, do a practice Q&A with a colleague, family member or friend. You can even interview yourself in a pinch — although that’s a last resort because you know what questions you’re going to pose to yourself. Record that session, play it back and critique yourself. If you practice, you’re unlikely to resort to fillers. “If you, y’know, don’t practice, you’re, y’know, setting yourself up for……” You get the idea.
