What Is the Contra Proferentem Rule? The contra proferentem rule is a legal doctrine in contract law which states that any clause considered to be ambiguous should be interpreted against the interests of the party that created, introduced, or requested that a clause be included. The contra proferentem rule guides the legal interpretation of contracts
What Is a Contrarian? Contrarian investing is an investment style in which investors purposefully go against prevailing market trends by selling when others are buying and buying when most investors are selling. Berkshire Hathaway Chair and Chief Executive Officer (CEO) Warren Buffett is a famous contrarian investor. Contrarian investors believe that people who say the market
What Is Contributed Capital? Contributed capital, also known as paid-in capital, is the cash and other assets that shareholders have given a company in exchange for stock. Investors make capital contributions when a company issues equity shares based on a price that shareholders are willing to pay for them. The total amount of contributed capital
The contributed surplus is the amount of capital from the issuance of shares above the par value. Also known as additional paid-in capital, the surplus is recorded in shareholders’ equity on the balance sheet. Breaking Down Contributed Surplus Initially, a share issuance of common shares will be allocated into two buckets — one for common
What Is Contribution Margin? The contribution margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm’s costs. The contribution margin is computed as the selling price per unit, minus the variable cost per unit. Also known as
DEFINITION of Control Control refers to having sufficient amount of voting shares of a company to make all corporate decisions. Also known as “corporate control,” this privileged position exists due to majority shareholder support or a dual-class shareholder structure, but can change through a takeover or proxy contest. BREAKING DOWN Control In most situations, control lies in
What Is a Controller? A controller is an individual who has responsibility for all accounting-related activities, including high-level accounting, managerial accounting, and finance activities, within a company. The duties of a controller include assisting with the preparation of the operating budgets, overseeing financial reporting and performing essential duties relating to payroll. Across all of the duties
What Is Control of Well Insurance? Control of well insurance, also called well control insurance, covers some or all of the costs associated with a well blowout, including regaining control, cleaning up pollution, and redrilling or restoring the well to operation. A blowout is when crude oil and natural gas are accidentally and uncontrollably released from
What Is the Convenience of Employer Test? The convenience of employer test is used to determine whether home office expenses or other work-related expenses paid by an employer are taxable. The convenience of employer test mandates that any employee expenses paid for by the employer must be solely for the convenience of the employer, and must
What Is a Conversion? A conversion is the exchange of a convertible type of asset into another type of asset—usually at a predetermined price—on or before a predetermined date. The conversion feature is a financial derivative instrument that is valued separately from the underlying security. Therefore, having an embedded conversion feature adds to the overall
