business law

attorney-in-fact

An attorney in fact is an agent authorized to act on behalf of another person, but not necessarily authorized to practice law, e.g. a person authorized to act by a power of attorney. Therefore an attorney in fact, which is not necessarily a...

audit

An audit (noun) is a formal examination and verification of an individual’s or organization’s records and accounts, finances, or compliance with a set of standards.

To audit (verb) is the act of conducting the formal...

audit committee

The audit committee is a committee composed of a company’s board of directors in charge of overseeing the company’s auditors, financial reporting, and disclosures. 15 U.S.C. § 78c(a)(58) defines an audit committee as “a committee (or...

auditor

An auditor is one who conducts an audit. Specifically, an auditor is a person or firm (usually an accountant or accounting firm) that conducts a formal examination and verification of an individual’s or organization’s records and accounts,...

authority

Authority is the official permission or right to act, often on behalf of another. Authority may also be a person or institution that has power over another person.

Authority as agency is the power to act on behalf of another...

authorize

To authorize means to grant authority; to empower. It may also mean to formally or officially approve.

[Last updated in June of 2021 by the Wex Definitions Team]

bad debt

Bad debt refers to debt such as a loan or advance that a creditor can no longer recover. A debt cannot be recovered for a variety of reasons such as insolvent debtors. In the corporate context, bad debt can be a critical blow to businesses,...

bad faith

Bad faith refers to dishonesty or fraud in a transaction. Depending on the exact setting, bad faith may mean a dishonest belief or purpose, untrustworthy performance of duties, neglect of fair dealing standards, or a fraudulent intent. It is...

bailee (custodian)

Bailee is a person who receives possession of a property or goods, usually pursuant to a contract of bailment. A bailee is responsible for the safe return of the property or goods to the owner (bailor) when the contract is fulfilled. Unlike a...

bailor

A bailor is a person or party who delivers a bailment. A bailor entrusts personal goods or other property to a bailee until its restoration to the bailor. That entrustment is temporary, and the bailor only relinquishes possession of the good...

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