ENGAGEMENT LETTER
Written agreement defining the specifics of the business relationship between a professional company and its clients. It states the firm will perform services in exchange for compensation. Some professional firms, specifically in the fields of accounting, consulting, finance, and law, use this agreement. Usually, the service company sends the letter to an officer of the engaging firm. Once the officer signs the letter, it serves as a contract.
POPULAR TERMS
Affirmative Covenant
A kind of contract or promise that requires a party to conduct some action. For example, a bond covenant which provides that the issuer must delive ...
Pure Risk
A risk where loss is the only potential outcome; there is no positive result. A pure risk is related to events that are out of control of the risk- ...
Efficiency
Performance level describing a process which uses the lowest amount of inputs to come up with the greatest amount of inputs. It is relative to usin ...
Tax Free
Goods and/or financial products that are not taxable. Having the tax free status allows an entity to save money and encourages additional spending ...
Reprice
A situation that is most often allowed for company executives or high-level employees. It permits them to trade in their options that out of the mo ...
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