Benchmarking is the process of comparing the metrics, policies and procedures of an organization to other best-in-class industry participants. Benchmarking is often used by both internal and external parties of an organization. Here are two examples of benchmarking in practice:
- People Ops benchmark salary bands against companies in a similar industry, funding stage, and size to ensure their organization is in line with the competition.
- Investors benchmark the metrics of a potential opportunity to gauge its relative attractiveness.
Bills of Exchange
The term bill of exchange, also known as a ‘commercial bill’, requires one party to pay a fixed sum of money to another party on demand or at a predetermined date. Bills of exchange typically involve three parties—the drawee (who pays back the sum), and the drawer (who lent and is repaid the sum).
Binding agreements are legal contracts that can be enforced at both the federal and state level. To be considered “binding” an agreement must meet the following criteria:
- Legality — The contract must align with all federal, state, and local laws.
- Consideration — The benefit that both parties receive from the agreement.
- Capacity — All parties must be in a position to legally sign the contract.
- Offer and acceptance — One party offers something and the other party must accept it.
- Mutuality — Both parties must have intentions to complete their obligations, and have an understanding that they will be bound by the contract.