What Is a Qualifying Disposition? Qualifying disposition refers to a sale, transfer, or exchange of stock that qualifies for favorable tax treatment. Individuals typically acquire this type of stock through an incentive stock option (ISO), or through a qualified employee stock purchase plan (ESPP). A qualified ESPP requires shareholder approval before it is implemented. Furthermore
What Is a Qualified Domestic Trust? A qualified domestic trust (QDOT) is a special kind of trust that allows taxpayers who survive a deceased spouse to take the marital deduction on estate taxes, even if the surviving spouse is not a U.S. citizen. Normally, a U.S. citizen surviving spouse can take the marital deduction, but a non-citizen
What Is a Qualifying Relative? A qualifying relative is a person designated by federal income tax code to be allowed to be claimed as a dependent by a taxpayer assuming the taxpayer provided considerable financial support for the qualifying relative during the tax year. Claiming a qualifying relative as a dependent will not currently allow the
What Is a Qualifying Transaction? A qualifying transaction is a process in which a private company in Canada issues public stock. This process involves the creation of a capital pool company (CPC) that acquires all of the outstanding shares of the private company, making it a subsidiary and a public company. Key Takeaways A qualifying
What Is a Qualifying Widow/Widower? The federal qualifying widow or widower tax filing status is available for two years for widows and widowers (surviving spouses) with dependents after their spouse’s death. The surviving spouse may file jointly with the deceased spouse for the tax year in which the spouse has died, and they can claim
What Is Qualitative Analysis? In business and management, qualitative analysis uses subjective judgment to analyze a company’s value or prospects based on non-quantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. Qualitative analysis contrasts with quantitative analysis, which focuses on numbers found in reports such as balance sheets. The
What Is Quality Control (QC)? Quality control (QC) is a process through which a business seeks to ensure that product quality is maintained or improved. Quality control requires the company to create an environment where management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products
What Is Quality Management? Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement. It is also referred to as total quality
What Is Quality of Earnings? A company’s quality of earnings is revealed by dismissing any anomalies, accounting tricks, or one-time events that may skew the real bottom-line numbers on performance. Once these are removed, the earnings that are derived from higher sales or lower costs can be seen clearly. Even factors external to the company
What Is Quality of Life? Quality of life is a highly subjective measure of happiness that is an essential component of many financial decisions. Factors that play a role in the quality of life vary according to personal preferences, but they often include financial security, job satisfaction, family life, health, and safety. Financial decisions can
