Startup Glossary

The Overhead Rate is the ratio of overhead costs to the revenue or labor hours, used to allocate overhead to products or projects.

Overhead Reduction involves strategies implemented to decrease the ongoing expenses not directly tied to the production of goods or services.

Oversubscribed occurs when the demand for a company`s stock offering or investment opportunity exceeds the available supply.

An Owner Financing Agreement is a financing arrangement where the seller of a business provides a loan to the buyer, often used in the sale of small businesses.

Owner`s Equity is the total value of assets owned by the entrepreneur after all liabilities have been subtracted.

Ownership Concentration is the extent to which a company`s shares are held by a small number of shareholders, potentially influencing control and decisions.

Ownership Concentration Risk is the potential for issues arising from a startup having a large percentage of its equity held by a small number of investors.

Ownership Dilution is the reduction in existing shareholders` ownership percentage due to the issuance of new shares.

Ownership Equity Analysis involves the examination of the distribution of company equity among founders, investors, and employees to ensure fairness and motivation.

Ownership Rights are the legal rights that come with owning shares in a company, including profit entitlement and voting in shareholder meetings.

The Ownership Structure is the arrangement of a company`s ownership, including the distribution of shares and voting rights among shareholders.

Ownership Structure Optimization involves adjusting the distribution of equity to balance control, incentive, and financial returns among founders and investors.

Ownership Transition Planning involves preparing for the transfer of a startup`s ownership or leadership, either through succession or sale, to ensure continuity.

Owning Shares involves holding equity in a company, which represents a portion of ownership and possibly the right to vote on corporate matters.