Substitution refers to the act of replacing one element with another in various contexts including banking, contract law, economics, law, and securities.
The substitution effect in economics refers to the change in consumption patterns due to a change in the relative prices of goods. When the price of a good decreases, consumers are more likely to substitute it for other goods, increasing their consumption of the now cheaper good. Conversely, when the price of a good increases, consumers will tend to switch to substitutes that have become relatively cheaper.
Substitution Law is an economic proposition stating that no good is absolutely irreplaceable; at some set of prices, consumers will opt for substitute goods.
In a graphical diagram illustrating relative consumption, the substitution slope represents the relationship of the substitution of any pair of goods with respect to one another at different prices out of a given income.
Detailed explanation of subsurface rights, their importance in real estate and mineral extraction, and how they differ from surface rights.
A subtenant is an individual or entity that leases a part or whole of a rented property from the original lessee for a period that is equal to or shorter than the term of the original lease. The original lessee, in this arrangement, becomes the sublessor.
A preliminary sum that represents the total of a set of numbers before any additional amounts, such as taxes or discounts, are included.
A suburb is a town or an unincorporated developed area close to a city that is largely residential and typically characterized by low-density development compared to urban centers.
A method of eliciting worker suggestions for management by having a box or receptacle where employees can place anonymous or signed comments; a method of obtaining employee feedback.
A structured method to elicit, gather, and implement worker suggestions aimed at improving organizational processes, efficiencies, and morale.
A seller's agent is a real estate professional who represents the seller in a property transaction. They have a fiduciary duty to act in the best interest of the seller.
A suit is a legal proceeding through which an individual or entity pursues a remedy that could be allowed by a court of law. It represents a formal dispute resolution process where judicial decisions are sought for enforcement of legal rights and obligations.
The sum-of-the-digits method is a technique for calculating the depreciation of a fixed asset, where the majority of the depreciation is recognized in the early years of the asset's life.
The Sum-of-the-Years'-Digits (SYD) depreciation is a method of allocating the cost of an asset over its useful life. This method involves computing a fraction each year that is applied against the depreciable amount, making it an accelerated depreciation method.
The Sum-of-the-Years'-Digits (SYD) method is an accelerated depreciation technique that allows for higher depreciation expenses in the earlier years of an asset's life and lower expenses as the asset ages.
An abbreviated form of the annual accounts and report that can be sent by listed companies to their shareholders instead of the full report, given specific conditions are met.
Summary possession is a legal term referring to an expedited court proceeding used by landlords to regain possession of rental property from tenants, commonly referred to as an eviction.
A summons is a legal mandate requiring the appearance of the defendant under the penalty of having a judgment entered against them for failure to appear. The primary purpose of a summons is to notify the defendant that they have been sued.
Sundry expenses refer to small, miscellaneous costs that are not easily classified under a specific heading in the accounting records.
Sunk costs are previous expenditures that cannot be recovered and are typically irrelevant to future decision-making.
Sunset industry refers to a mature industry that is at the end of its product life cycle, often characterized by declining demand, technological obsolescence, and reduced profitability.
A condition in a law or regulation that includes its own expiration date unless specifically reinstated by legislation.
State or federal laws, also known as government in the sunshine laws, require most meetings of regulatory bodies to be held in public and most of their decisions and records to be disclosed.
Superannuation is an organizational pension program created by a company for the benefit of its employees, synonymous with an occupational pension scheme. Funds deposited in a superannuation account grow until retirement or otherwise withdrawn.
Extremely powerful and technologically advanced computers used for solving complex and computationally intensive scientific or engineering problems.
A Superfund is an account established by the federal government dedicated to cleaning up areas polluted with hazardous waste when no other source of payment is available.
A superintendent is a person who has oversight and charge of a department in an organization, often serving as a senior manager to ensure efficient and effective operations.
A supermarket is a large self-service retail store offering a variety of food and household products, organized into aisles and often operating on a cash-and-carry basis.
A self-service retail establishment that covers a large area and offers a wide variety of goods including food and non-food items such as groceries, electronics, clothing, and more.
A supplemental agreement is a legal document that amends a previous contract by adding additional conditions and stipulations. It serves as an extension or modification to the original agreement without entirely replacing it.
Supplemental Security Income (SSI) is a needs-based program administered by the Social Security Administration that provides supplemental income to individuals who are aged, blind, or disabled, with limited income and resources.
Supplemental Security Income (SSI) is a federal program designed to provide financial aid to individuals with low income and minimal assets. It offers monthly payments to eligible recipients, including those who are elderly, blind, or disabled.
Supplemental Unemployment Benefits (SUB) are payments received by terminated employees from an employer-financed fund that are distinguishable from standard unemployment compensation.
Supplemental wages include bonuses, commissions, overtime pay, and certain [SICK PAY]. An employer can withhold income tax at a flat 25% rate or use the same method as for regular wages.
The Supplemental Young Child Credit is a component of tax policy aimed at providing additional financial support to families with young children. This credit is often integrated within broader tax credit programs, such as the Earned Income Tax Credit (EITC) in the United States, to reduce the tax burden for qualifying taxpayers with dependent children.
A supplier is an individual or entity that provides goods, materials, or services to another organization, typically in a commercial context.
Supplier credit is a financing method in which a supplier allows a buyer to purchase goods or services on credit, paying for them at a later date, potentially improving the buyer’s cash flow and operational efficiency.
Supply refers to the total amount of a commodity that producers are willing and able to sell at various price levels in a given time period. In economic terms, supply is a fundamental concept related to the available production capacity and market pricing dynamics.
Graphic representation of supply and demand schedules of a particular market showing the equilibrium point where the supply and demand curves intersect, determining the equilibrium price and quantity.
Supply Chain Management (SCM) involves tracking the movement and demand for components used in manufacturing across various suppliers to provide insight and the ability to respond promptly to changes. SCM aims to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce costs.
The Supply Price corresponds to the specific price level at which producers are willing to supply a particular quantity of goods or services, as indicated by a supply schedule or supply curve.
Supply risk refers to the inherent risks associated with the unavailability or disruption of raw materials necessary for the operation of a business or project.
Supply-Side Economics is a theory of economics contending that drastic reductions in tax rates will stimulate productive investment by corporations and wealthy individuals, ultimately benefiting the entire society. This theory was championed in the late 1970s by Professor Arthur Laffer.
A support cost centre refers to a department or unit within an organization that provides essential services to other departments, enabling them to operate smoothly and efficiently without directly contributing to the final product or service.
A support level is a price level at which a security tends to stop falling because there is more demand for the security than supply of the security. It is an important concept in technical analysis used by traders and investors to make informed decisions.
The Support Test is one of the five criteria used to determine whether an individual can be claimed as a dependent on a taxpayer's tax return.
The Supreme Court is the highest appellate court or court of last resort in the federal court system and in most states. It reviews the constitutionality of tax laws and some tax decisions by Courts of Appeal under its certiorari procedure.
A surcharge is an additional fee or levy added to an existing charge, cost, or tax. It is commonly applied to manage varying expenses or to cover costs that aren't accounted for in the primary charge.
A notice issued when a trader is late with a value-added tax (VAT) return or with the payment of the VAT. The surcharge period is specified on the notice and it will run to the anniversary of the end of the period in which the default occurred.
A surety bond is a legally binding contract involving three parties: the principal, the surety, and the obligee, where the surety agrees to fulfill the obligation if the principal defaults.
Surfing refers to the act of casually browsing or exploring the World Wide Web, typically without a specific goal in mind. The term is analogous to 'channel surfing' with a TV remote control, where a person flips through TV channels looking for something interesting to watch.
A surge protector is a device designed to protect electrical appliances from voltage spikes by blocking or shorting excess voltage from the AC power line.
Surplus refers to any excess amount over what is needed, particularly in finance and corporate accounting. It denotes assets that remain after liabilities, debts, and capital stock have been deducted.
Surplus Advance Corporation Tax (ACT) refers to the excess amount of advance corporation tax paid within an accounting period that surpassed the maximum amount allowable for set-off against gross corporation tax. This taxation mechanism was abolished effective 1 April 1999.
In Marxist theory, surplus value represents the excess value produced by labor over the wage paid to laborers, considered a primary source of capitalist profit.
Surrender is the cancellation of a lease agreement by mutual consent of both the lessor (property owner) and the lessee (tenant), effectively ending their contractual lease obligations.
The surrender value is the sum of money given by an insurance company to the insured on a life policy that is canceled before it has run its full term. The amount is calculated approximately by deducting from the total value of the premiums paid any costs, administration expenses, and charges for life-assurance cover up to the cancellation date.
A survey is a methodologically structured process by which information is collected from a group of respondents to understand public attitudes, preferences, behaviors, or characteristics. Surveys are widely used in various fields such as marketing, political science, sociology, and public health.
A survey area refers to a specific geographic location that is used to collect data, typically during research studies or market analyses. The purpose of defining a survey area is to ensure the data collected is relevant and represents the broader population or market being studied.
A surveyor is a professional who measures and maps out the position, dimensions, and contour of the land or structures on the surface of the Earth. This role is crucial in various industries including construction, real estate, and civil engineering.
A surviving spouse refers to a widow or widower who outlives their partner. In tax terms, a surviving spouse may file a joint return with the deceased spouse in the year of death and use joint return tax rates for two years following the spouse's death if certain conditions are met.
A program within the Social Security System that provides financial assistance in the form of lump-sum payments and monthly benefits to the eligible survivors of a deceased worker.
Survivorship refers to the legal right of a joint tenant or tenants to obtain ownership rights following the death of another joint tenant. It prevents heirs of the deceased from making ownership claims against the property.
A bond issued by a Japanese-registered company in a currency other than yen but targeted primarily at the Japanese institutional investor market.
Suspended trading refers to the temporary halt in trading of a particular security, usually in anticipation of a major news announcement or to correct imbalances in buy and sell orders.
A suspense account is a temporary account in the books of an organization used to record balances to correct mistakes or balances that have not yet been finalized.
A suspension refers to a disciplinary action imposed on an employee for a specific period of time. It is less severe than discharge or dismissal, and the employee can resume their duties after the suspension period ends.
Exploring the comprehensive systems and guidelines companies use to report their environmental, social, and governance (ESG) practices.
A sustainable business operates in a manner that minimizes its impact on the environment while ensuring that sufficient resources remain available for future generations. This involves adopting practices that promote environmental conservation and reduce ecological footprints.
A financial mechanism that enables parties to exchange cash flows or financial instruments to meet specific funding or investment needs. Common types include currency swaps and interest-rate swaps.
A swaption is an option that grants the holder the right, but not the obligation, to enter into an interest rate swap agreement. It is a useful financial instrument for managing interest rate risk.
Sweat equity refers to the value added to a property by improvements resulting from work performed personally by the owner. It is a non-monetary investment that enhances the worth or appeal of an asset through manual labor and personal effort.
A place of employment with unacceptable working conditions, characterized by low pay, poor working conditions, safety violations, and inhumane treatment of employees.
Sweepstakes are a popular type of sales promotion where lavish prizes are offered to entrants who have only to submit entries with their name and address by return mail or at a location determined by the sweepstakes sponsor, usually in a retail outlet where the sponsor's products are sold.
A sweetener is a feature added to a securities offering to make it more attractive to purchasers, often enhancing its appeal and increasing the likelihood of the security being successfully issued.
SWF, or Sovereign Wealth Fund, is a state-owned investment fund or entity that is commonly established from balance of payments surpluses, official foreign currency operations, or revenue generated from natural resources.
SWIFT is an interbank telecommunications network that facilitates the secure messaging and confirmation of international funds transfers between financial institutions.
A swing shift is a work shift in industry that typically runs from the mid-afternoon until midnight or until the midnight shift.
A short-term credit line allowing business borrowers to access funds quickly and efficiently, often to manage temporary shortfalls in other credit arrangements.
Switching refers to the process of moving assets from one mutual fund to another. This movement can occur either within a family of funds or between different fund families.
A comprehensive assessment framework to evaluate the strengths, weaknesses, opportunities, and threats of an organization, which helps in understanding its current position and future potential.
A sympathetic strike occurs when workers who are not directly involved in a dispute with their employer strike to express solidarity with workers who are on strike in another industry or sector.
A syndicate is a collaborative group of individuals or companies formed to undertake a project that would be difficult to accomplish individually. It can be classified as a partnership or corporation for tax purposes.
A syndicated bank facility, also known as a syndicated loan, is a very large loan provided to a single borrower by a consortium of banks and financial institutions, typically led by a lead bank.
Syndication is a method of selling property whereby a sponsor, or syndicator, sells interests to investors. It can take various forms including partnerships, limited partnerships, tenancy in common, corporations, limited liability companies, or S Corporations.
Expenditures incurred for promoting and marketing interests, which are capitalized as an intangible asset (and not deductible or amortizable).
A syndicator is a person or organization responsible for selling investments in shares or units within a syndicate.
Synergy describes the added value created by merging two separate firms, leading to a greater return than the sum of their individual contributions. This enhanced return is typically anticipated during merger or takeover activities.
Syntax in computer programming refers to the set of rules that define how statements in a programming language must be structured. Violating these rules results in syntax errors.
A synthetic lease is a rental agreement that shifts all obligations, risks, and costs of the property to the tenant while the owner receives an absolute fixed rent. It is also known as a credit-tenant lease.
A synthetic system refers to a production process that combines two or more materials or parts to complete a finished product.
A system is an organization of functionally interactive units working towards the achievement of a common goal. All systems have inputs, outputs, and feedback, and maintain a basic level of equilibrium.
A product of the computer manufacturer designed to help users operate the system efficiently and effectively. It includes various software tools and utilities to manage hardware and software resources.
Systematic sampling is a probability sampling method where researchers select every nth observation from a larger population, following an initial randomly chosen starting point.
Systemic risk, also known as market risk or systematic risk, refers to the part of a security’s risk that is common to all securities within the same general class and cannot be eliminated by diversification. The measure of systemic risk for individual stocks is the Beta Coefficient.
An extensive control file designed to support the internal auditing and monitoring of automated data processing systems.
A SCARF is an embedded audit facility in a computer that consists of program code or additional data provided by an auditor and incorporated into a computerized accounting system. It is designed to flag transactions that meet specified criteria for review.
Systems Development Controls refer to the internal controls that ensure the development of computerized systems is properly managed and secured. These measures mitigate risks by enforcing structured protocols such as the segregation of duties.
Systems Network Architecture (SNA) is a proprietary networking architecture created by IBM, primarily used for IBM's mainframe and midrange computer systems.
A person who writes the programs needed for a computer system to function, such as operating systems, language processors and compilers, and data file management programs.
