A sleeping partner is an individual who invests capital in a partnership but does not participate in daily business operations. This person shares in the profits and bears the legal rights and obligations of ownership as specified in the partnership agreement.
SLM Corporation, commonly known as Sallie Mae, is a publicly traded corporation that guarantees student loans and is actively traded on the secondary market. It purchases student loans from originating financial institutions and provides financing to state student loan agencies.
SLM Corporation, commonly known as Sallie Mae, is a publicly traded U.S. corporation that provides student loans and other education services.
A deliberate reduction of output by employees to bring economic pressure upon an employer without the costs of initiating a strike.
A slump denotes a noticeable drop in economic or productive activity. While it indicates a downturn, it is generally less severe than a recession or a depression.
A slush fund is a financial stash reserved for illicit purposes, such as bribery or unethical activities, often without an accurate accounting record.
According to the U.S. Department of Commerce, a small business is defined as a business employing less than 100 people. Small businesses play a disproportionately important role in innovation as well as in economic and employment growth in the United States.
The Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The SBA's mission is to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters.
The Small Business Administration (SBA) is a federal government agency based in Washington, D.C., dedicated to supporting and encouraging small businesses through various programs, including low-interest loans to qualified businesspersons.
Ordinary deduction treatment for certain individuals and partnerships on the sales of stock or in cases of bankruptcy, allowing for ordinary loss treatment up to specific limits.
A Small Business Investment Company (SBIC) operates under the Small Business Investment Act of 1958 and provides financial assistance to small businesses.
A small claims court is a court of limited jurisdiction where a claim for a relatively small amount can be settled on an informal basis.
The Small Claims Division is a specific section of the Tax Court where taxpayers can resolve disputes involving amounts not exceeding $10,000 in a less formal and expedient manner compared to standard procedures.
Under UK company law, a small company is a private company satisfying certain criteria related to net worth, turnover, and the number of employees.
The Small Firms Loan Guarantee (SFLG) was a government-backed scheme in the UK designed to help small businesses secure financing when they could not offer sufficient collateral. It has been succeeded by the Enterprise Finance Guarantee (EFG).
A small group is a classification under the Companies Act where specific size criteria meet and allow exemptions for certain financial reporting requirements.
An individual investor who buys small amounts of stock or bonds, often in odd-lot quantities; also called a retail investor.
The term Small Office/Home Office (SOHO) is used to describe a work environment where individuals operate from home or a small office setting, leveraging technology such as faxes, scanners, and personal computers to compete with larger corporations.
SOHO stands for Small Office/Home Office, which refers to small-scale business setups that operate out of a residential or small commercial space. This term is primarily associated with entrepreneurial ventures, freelancers, and remote workers.
Small-cap stocks refer to the stocks of publicly traded companies with a market capitalization typically between $300 million and $2 billion. They are considered less well-established but often exhibit faster growth potential compared to mid-cap and large-cap stocks.
A plastic card embedded with a microprocessor that stores and updates information for purposes such as performing financial transactions and storing personal medical records.
A smartphone is a mobile phone that includes various features such as memory, computing, and connectivity. Smartphones are capable of functioning as personal digital assistants (PDAs), sending and receiving emails, and browsing the web. Software developers create applications (apps) which can be used online or offline to perform specific tasks. Popular smartphones include BlackBerry, iPhone, and those running on Android or Windows Phone operating systems.
SME stands for small or medium-sized enterprise. The term is widely used without a standard definition, varying based on net worth, turnover, profits, or number of employees.
An influential report focused on defining and guiding the role of audit committees, published under Sir Robert Smith in 2003 alongside the Higgs Report on non-executive directors, shaping subsequent revisions to the Corporate Governance Code.
The Smithsonian Agreement was a pivotal international accord signed in December 1971, which ended the fixed exchange rates established at the Bretton Woods Conference of 1944 and substituted a floating currency exchange rate.
A provision in the Extended Coverage Endorsement of an insurance policy that ensures coverage for smoke damage resulting from sudden, unusual, and faulty operation of on-premises cooking or heating units connected to the chimney by means of a vent.
The smokestack industry refers to heavy industry sectors, such as the steel and automotive industries, characterized by their extensive industrial facilities often featuring large smokestacks. These sectors are facing significant international competition.
The practice of breaking down a large financial transaction into multiple smaller ones to avoid regulatory reporting. Used often in money laundering.
Snail mail refers to traditional mail sent through postal services as opposed to electronic mail (email). This term is often used to highlight the slow nature of traditional mail in contrast to the immediacy of electronic communication.
Snowballing in business refers to a situation in which business activity rapidly increases and builds momentum, often leading to exponential growth.
Social accounting issues encompass the various impacts an organization has on society, internally and externally, through initiatives such as charitable donations, education sponsorships, product safety, community involvement, environmental conservation, and the employment of disadvantaged groups.
A comprehensive evaluation of the impact that an organization has on society, including components like environmental audits as part of broader social responsibility reporting.
A tax-exempt social club is organized for pleasure, recreation, and other nonprofitable purposes where substantially all activities are for such purposes. None of the net earnings benefit any private shareholders.
Social lending, also known as peer-to-peer (P2P) lending, is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary.
Social networks and networking sites are online services, platforms, or sites that facilitate discussion groups or personalized communities where users with common interests and activities can socialize. Key features include customizable profiles, adding friends, sharing multimedia, and built-in communication tools.
Social overhead capital refers to the investment in infrastructure and services like education, healthcare, and transportation, whose productivity cannot be directly measured but play a crucial role in overall economic growth and societal well-being.
Social responsibility involves ethical and societally moral behavior. Socially responsible conduct supports acceptable societal standards and laws.
Social Responsibility Reporting (also known as Corporate Social Reporting) refers to the practice of communicating a business's initiatives and achievements in social accounting issues, often included within the annual accounts or in a separate report.
The Social Security Act, a cornerstone of the federal retirement plan enacted by Congress in 1935, was designed to create a system where the current working generation finances the retirement of older workers. This program was a response to the socioeconomic challenges posed by the Great Depression.
The requirement for employers to report annually to the U.S. Treasury Department the names of employees who terminated employment with vested benefits, and the associated amount of these benefits. This information is also shared with the Social Security Administration (SSA) and made available to the employees upon request.
Social Security credits determine a person's eligibility for Social Security programs. Credits are earned by working in a covered job and by paying Social Security taxes.
Social Security Disability Income Insurance (SSDI) is a federal insurance program funded by payroll taxes that provides financial benefits to eligible workers who are unable to work due to a long-term disability expected to last at least one year or result in death.
An identifying number for individuals that is furnished by the Social Security Administration. Social Security numbers are required for all individual taxpayers and dependents. It is the counterpart of the Employer Identification Number (EIN) that is used for non-individual entities such as businesses, trusts, and partnerships.
The Social Security tax, specifically the Old-Age, Survivors, and Disability Insurance (OASDI) portion, is a crucial federal tax under the Federal Insurance Contributions Act (FICA) that applies to compensation and self-employment earnings.
Socialism is an economic system characterized by government ownership or control over the major critical industries, while allowing collective ownership and some private ownership in less critical sectors like agriculture and services.
Investing in securities of companies that align with particular social priorities, often excluding entities involved in controversial industries or practices.
Socially responsible investment (SRI) involves choosing investments based on ethical, social, and governance criteria, aligning financial goals with personal values and societal norms.
SARL, or 'Società a Responsabilità Limitata', is the Italian designation for a firm with limited liability. It is a common type of business entity in Italy that offers liability protection to its owners while allowing a flexible organizational structure.
The Society of Actuaries (SOA) is an organization dedicated to the advancement and professional development of actuaries, providing invaluable resources, designations like the FSA (Fellow, Society of Actuaries), and fostering collaborations with members, volunteers, and other actuarial organizations.
A soft currency is one that is not freely convertible and typically faces restrictions on exchange, often due to economic instability or lack of demand in the international market.
Soft dollars refer to a type of payment method used primarily in the financial industry, particularly in the context of brokerage and investment management services. This non-cash compensation allows investors to pay for services using commissions generated from trading activities.
Soft goods refer to merchandise that is soft to the touch, including clothing and other textile goods. In the merchandising industry, they are considered nondurable goods.
A soft landing refers to a situation in which an economy slows down but manages to avoid falling into a recession. This term was borrowed from astronautics in the late 1950s and originally described a safe moon landing.
A special type of government loan in which the terms and conditions of repayment are more generous (or softer) than they would be under normal finance circumstances. For example, the interest rate might be less and the repayment term might be for a longer period.
A market in which demand has shrunk, or supply has grown faster than demand, making sales at reasonable prices more difficult, commonly referred to as a buyer's market.
Money contributed to a proposed development or investment that is typically tax-deductible, or refers to development costs that do not go into physical construction.
**Soft Spot** refers to a minor weakness in selected stocks or stock groups within a generally strong and advancing market. It indicates areas that are underperforming relative to the broader market trends.
Software refers to the programs and algorithms that run on computers, making it possible for them to perform specific tasks and functions. Software is a key element in the functioning of any computer system, distinctly separate from hardware, which comprises the physical components of the system.
Software Engineering is the systematic application of engineering approaches to the development, operation, and maintenance of software.
A software license is an agreement between a software publisher and the end user, outlining the terms under which the software can be used.
The Soil Bank program involves land held out of agricultural production to stabilize commodity prices and promote soil conservation. Subsidies to participating farmers are provided by the U.S. Department of Agriculture.
The sold ledger, often referred to as the debtors' ledger, captures all transactions involving sales made on credit. It helps businesses keep track of amounts owed by customers and ensures proper management of accounts receivable.
An accounting term referring to an individual who operates their professional practice as a sole proprietor, typically applied in fields like accounting, law, or consulting.
A sole proprietor is an individual who owns and operates an unincorporated business alone. Typically, a sole trader refers to an individual in business independently, while a sole practitioner is a professional practicing on their own.
A sole proprietorship is a business or financial venture that is carried on by a single individual and is not organized as a trust or corporation. The sole owner has unlimited liability and reports income and expenses on Schedule C of Form 1040.
Solicitors' Accounts are specialized financial records prepared under the Solicitors' Accounts Rules, emphasizing the separation of client funds from the solicitor firm's own funds to ensure transparency and trust.
A detailed examination of key contributions by Professor David Solomons on the education, training, and standards of professional accounting.
Solvency refers to the ability of an individual or an organization to meet its long-term financial obligations and continue its operations in the future. Specifically, solvency can represent a financial state where a person or company can pay their debts as they come due, or the extent to which a bank's assets exceed its liabilities.
Sorting is the process of arranging data in a particular order, either numerically or alphabetically. It is a fundamental operation in various computing tasks, used to organize data efficiently for quick access and analysis. Most modern computer operating systems include built-in sorting algorithms and programs.
In the UK, a sequence of numbers on a cheque, bank giro credit, or bank card that serves to identify the branch holding the account. The US equivalent is the routing number.
A channel of sale that generated an order or customer. Source evaluation is an essential part of direct marketing that enables marketers to concentrate their promotion expenditures on the best sources.
The first document to record a transaction, serving as proof of an event recorded by the company’s accounting system.
A source program is a computer program written in a high-level programming language (such as BASIC, FORTRAN, or Pascal) and fed into a computer for translation into machine language.
An analysis of changes in the financial position of a firm from one accounting period to another; also known as the sources and uses of funds statement.
Sources of funds are various channels through which businesses obtain the capital required to operate and expand. They are detailed within the statement of changes in financial position, highlighting the increase in funds during an accounting period. Funds are typically defined as working capital or cash.
Sovereign debt is debt issued by a national government in the form of bonds denominated in a foreign currency. It is often considered a low-risk investment, but instances of sovereign debt crises have demonstrated that this is not always the case.
Sovereign risk, also known as political credit risk, refers to the risk that a foreign central government will default on its loan obligations or fail to honor other financial commitments, potentially leading to financial loss for investors.
A sovereign wealth fund (SWF) is a state-owned investment fund composed of various financial assets strategically managed to increase wealth and provide financing for the future economic needs of the nation.
Government-owned pools of investment funds typically invested in foreign assets and funded by foreign currency reserves, derived from current account surpluses.
Società per Azioni (SPA) is the Italian term for a corporation. It is a common legal form for medium and large enterprises in Italy, similar to a public limited company in other jurisdictions.
Spam refers to unsolicited and often irrelevant messages sent over the internet, typically to a large number of users, for the purpose of advertising, phishing, spreading malware, or other nefarious activities.
A spam filter is a software tool designed to distinguish spam from ordinary email, providing users with a cleaner and safer inbox experience. Spam filters can be applied at multiple levels, including the user's ISP, webmail service, and mail client.
Span of Control refers to the principle of management stating the number of people a manager can supervise effectively. The ability to supervise people depends on various factors including the nature of the job, the professional level of employees, and their geographical location.
SPDRs, also known as Standard & Poor's Depositary Receipts or 'spiders,' are securities traded on major exchanges representing ownership in a long-term unit investment trust that holds a portfolio of common stocks. These portfolios are meticulously designed to track the performance of the S&P 500 Index.
SPDR, also known as Standard & Poor’s Depositary Receipts, are a type of Exchange Traded Fund (ETF) designed to track a specific index, sector, commodity, or other asset.
A spec house is a single-family dwelling constructed by a builder or developer in anticipation of finding a buyer. It is built speculative, without having a specific buyer signed before construction starts.
A special agent can refer to either a professional engaged to act on behalf of another with limited authority, such as a real estate broker, or an Internal Revenue Service employee tasked with investigating potential fraud.
A compulsory levy or fee imposed on specific properties to fund public improvements that are assumed to increase the value or utility of the assessed properties.
A body of specialized tax lawyers appointed to hear appeals against assessments to various taxes, including income tax, corporation tax, capital gains tax, and inheritance tax.
Special Delivery was a service provided by the U.S. Postal Service for expedited handling and delivery of mail, offering preferential processing and delivering even on Sundays and holidays.
A single irregular dividend payment made after an especially profitable year or during the restructuring of a company, aimed at distributing excess profits or incentivizing shareholders.
Special Drawing Rights (SDR) are international reserve assets created by the International Monetary Fund (IMF) to supplement its member countries' official reserves.
Special Drawing Rights (SDRs) are supplementary foreign exchange reserve assets, created and maintained by the International Monetary Fund (IMF). Known informally as 'paper gold', SDRs were first issued in 1970 with the aim to supplement member countries' official reserves, providing liquidity and enhancing global financial stability.
U.S. Postal Service designation for packages containing goods that may be harmed in shipping, such as live chickens or perishable produce.
A special master is an expert appointed by a court to assist in understanding and potentially resolving complex legal matters.
An overview of the Special Multiperil Policy (SMP), which offers comprehensive insurance coverage for large businesses across property, liability, crime, and boiler/machinery.
An expression frequently used by retailers to comply with federal regulations when advertising special sales, often highlighting strikingly low prices to encourage customer perception of value.
A Special Purpose Vehicle (SPV) is a separate legal entity created by a parent company to isolate financial risk. The SPV is often used for a single specific purpose, such as to facilitate complex financial transactions, isolation of assets, and credit enhancement in securitization.
A Special Purpose Vehicle (SPV) or Special Purpose Entity (SPE) is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company allows separation of the parent organization from financial risk.
A special resolution is a resolution of the members of a company that must receive the approval of at least 75% of the members to be valid. It’s a crucial mechanism for making significant changes within a company, requiring thorough notice to all members and detailed information about the proposed resolution.
