S Corporation One that may elect, under Subchapter S of the Internal Revenue Code, to be taxed as a sole proprietorship, if owned by one stockholder, or as a partnership, if owned by several stockholders.
Salary Payment that is consistent from period to period.
Sales Allowance An offer of a lower price when the merchandise delivered is not exactly what is ordered; an inducement to the buyer under special circumstances.
Sales Discounts An available discount granted by a seller for early payment of an invoice; a contra account to sales.
Sales Finance Company A firm that provides short term capital to retailers (and sometimes wholesalers) by purchasing the installment sales contract (promissory notes) that they have accepted from customers.
Sales Mix The relative distribution of sales among the various products for sale.
Sales Orientation The energy of the company is focused on selling the products produced.
Sales Promotion Those marketing activities other than personal selling and advertising that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations, and various non-recurrent selling efforts not in the ordinary routine.
Sales Returns and Allowances Reductions in sales, resulting from merchandise being returned by customers or from the seller’s reduction in the original sales price; a contra account to sales.
Sales Weighted DSO A technique for calculating collection effectiveness that relates outstanding receivable balances directly to the sales that generate them.
Sample 1. A cross-section of a total group that has the same distribution of characteristics as the larger group (or universe) whose characteristics are being explored;
2. A model.
Satisfaction 1. The release and discharge of a legal obligation. Satisfaction may be partial or full performance of the obligation;
2. The acceptance by the obligee of such performance.
Satisficing A common practice of choosing the first acceptable alternative instead of searching for an optimal alternative.
Savings Account or Time Deposit A sum of money, deposited with a bank, that cannot be withdrawn by writing a check.
Savings and Loan Associations (S&L’s) Thrift institutions that accept time deposits and lend them primarily to buyers of single-family homes.
Say’s Law People produce because they want to spend, so the supply of a given quantity of aggregate output generates an equivalent quantity demanded.
Scarce The amount people desire exceeds the amount that is freely available.
Schedule (Bankruptcy Term) A debtor is required to file a schedule in a bankruptcy which lists: assets, creditors, leases, executory contracts, and other relevant information to enable a trustee or creditor to determine how a case should be conducted.
Scheduling 1. A listing of necessary activities, their order of accomplishment, who is to do each, and time needed to complete them;
2. The production control step that allots time for each operation along the route.
Schema The data definition for a database.
Scienter Knowledge by a defrauding party of the falsity of a representation.
Scorekeeping Analysis to discover how well the firm is doing.
Screen Generator A program that permits a programmer to place headings, instructions, comments, and data entry fields anywhere on a screen with minimal effort.
Seal A indication (emblem) that an instrument was executed in a formal manner.
Seasonably An action is taken seasonably when it is taken at or within the time agreed, or if no time is agreed, at or within a reasonable time.
Seasonal Dating An extension of terms of sale offered by a supplier to encourage a customer to take seasonally consumed goods early, without the burden of paying until the customer sells the goods.
Seasonal Unemployment Unemployment caused by seasonal shifts in the labor supply and demand.
Secondary Boycott A conspiracy or combination to cause the customers or suppliers of an employer to cease doing business with that employer.
Secondary Data Data that presently exists; it has been recorded somewhere, and management need only go to the source.
Secondary Party Under Article 3 Commercial Paper, a drawer or endorser.
Secondary Storage A storage device that stores programs and data for future processing.
Secret Partner A partner who may be an active manager but does not want their identity revealed to the general public.
Secured Claim Secured creditors are entitled to payment prior to unsecured creditors to the extent of their secured interest.
Secured Creditor A class of creditor who is paid in a bankruptcy prior to unsecured creditors. Secured claims are paid in order of the filing of the claim.
Secured Party A lender, seller, or other person in whose favor there is a security interest.
Securities and Exchange Commission (SEC) A federal regulatory agency that has the legal authority to prescribe accounting principles and procedures for companies under its jurisdiction and to prescribe the form and content of financial reports filed with the SEC. The SEC delegated the responsibility to prescribe accounting principles and procedures to the private sector (FASB). However, the SEC is still responsible for enforcement authority. It was established by congress to protect investors and regulate the trading of securities.
Security May be bonds, stock or other property that a debtor places with a creditor, who may sell them if the debt is not paid.
Security Agreement It creates or provides for a security interest.
Security Interest An interest in personal property or fixtures that secures payment or performance for an obligation.
Segregation of System Duties The division of responsibilities among two or more people to reduce the likelihood of theft or accidental misprocessing in an information system.
Self-Funding Occurs when an employer sets aside funds to pay health claims in excess of the amount provided by funding in lieu of insurance coverage.
Self-Insurance Fund A special fund of cash and marketable securities that will be used to pay for losses caused by natural disasters such as fire, flood, and earthquake.
Self-Managed Work Team A vertically integrated team that is given almost complete autonomy in determining how a task will be done.
Sell To negotiate an arrangement for a sale. A sale is an executed contract, a result of the process of selling.
Selling Expenses Expenses incurred directly in the sales of merchandise.
Selling, General, and Administrative Expenses Costs not specifically identifiable with or assigned to production. These include marketing, selling, research and development, pension, and administrative expenses.
Semi-Structured Task A task for which information requirements and procedures are generally known, although some of its aspects still rely on the judgment on the person doing the task.
Sensitivity Analysis The use of an organized sequence of “what if” questions to study how the model behaves under different circumstances.
Sequential Access A data access method in which individual records within a file are processed in sequence.
Service Bureau A firm that processes clients’ data on its own computer for a fee.
Service Charge An agreed upon or contracted fee added to a sales or service price.
Service Corps Of Retired Executives (SCORE) A volunteer organization of retired higher managers who advise small-business owners in conjunction with the Small Business Administration.
Service Department Charges The costs of services provided by an internal service department and transferred to a responsibility center.
Service Mark A mark or words used in sales or advertising literature to distinguish a firm’s services from those of its competitors.
Setoff/Offset Under most state laws, a creditor has the right to offset mutual debts it owes the debtor against the debtor’s liability to it. The Bankruptcy Code does not alter the state law rights. However, if you owe the debtor money, you may not offset that against any claim you hold against the debtor without relief from the automatic stay. If you hold a claim against the debtor and also owe the debtor money, you should act promptly to obtain relief from the stay to make the offset. As an unsecured creditor, you may also be concerned with prepetition setoffs by banks and other lending institutions. Under 11 U.S.C. Š 553 and 11 U.S.C. Š 547, offsets within ninety days of the bankruptcy filing may create a preference.
Settle Under Article 4 Bank Deposits And Collections, settle means to pay in cash, by clearinghouse settlement, in a charge or credit or by remittance or otherwise as instructed. A settlement may be either provisional or final.
Severable Contract A contract in which the performance is divisible. Two or more parts may be set over against each other. Items and prices may be apportioned to each other without relation to the full performance of all of its parts.
Sexual Harassment Behavior marked by sexually suggestive remarks, unwanted touching and sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature.
Shareholders A corporation’s owners but frequently not the individuals who control and manage the firm day by day.
Sherman Antitrust Act Federal legislation aimed at the prevention of business monopoly and which declares illegal every contract, combination, or conspiracy in restraint of normal trade.
Short Run A period during which at least one of a firm’s resources cannot be varied.
Short-Term Capital Money spent on business operations covering a period of a year or less.
Short-Term Plans Plans that cover less than one year.
SIC Code An abbreviation for Standard Industrial Classification. Each four digit code represents a unique business line.
Sight Draft An instrument which is used in connection with COD shipments. The document is prepared by a creditor and in effect request the customer’s bank to pay the customer’s account.
Sight Letter of Credit Upon sight of the required documents stated in the letter of credit (assuming all documents are in order according to the letter of credit conditions), payment is due.
Silent Partner A partner who assumes no active role in managing the firm, but who may be known to the general public as a partner.
Simple Interest A finance charge computed on the principal balance of any portion that remains unpaid and not on any previous interest amounts.
Simple Structure An organization that is low on complexity and formalization but high in centralization.
Simple-Recognition Shop An arrangement wherein all employees, whether union members or not, receive the same pay, work assignments, and benefits.
Simulation Model A mathematical model that calculates projected outcomes of particular decisions and assumptions.
Singer Individuals giving phony trade references.
Single-Source Purchasing Buying a product from one company only.
Single-Step Income Statement An income statement in which the total of all expenses is deducted in one step from the total of all revenues.
Sinking Fund A special fund a company creates and pays money into over the life of a bond issue so dollars will be available to pay off the bonds when they mature.
Sinking Fund Assets set aside in a special fund to be used for a specific purpose.
Site License A blanket contract covering the use of a particular software product at a particular site.
Situs The place where a thing is located. The situs of personal property is the domicile of the owner. The situs of land is the state or county where it is located.
Skimming Charging a relatively high price when the product first appears on the market.
Skip A term given to a company which suddenly goes out of business without any notification.
Skip Tracing The process used in checking and obtaining information which could lead to locating a debtor’s whereabouts for the purpose of collection.
Slander An oral utterance that tends to injure the reputation of another.
Small Business An independently owned and operated profit-seeking enterprise having a small number of employees as determined by each industry.
Small Business Administration (SBA) A federal government agency started in 1953 to give financial and managerial assistance to owners of small businesses.
Small Business Chapter 11 Under the Bankruptcy Reform Act of 1994, a “small business” provision was adopted to permit an accelerated Chapter 11 for commercial or business debtors with less than $2,000,000 in debt. In a “small business Chapter 11,” the court may order that no creditors’ committee be appointed, thereby saving expense. It is intended to streamline the Chapter 11 process in small cases.
Smart Card A plastic card containing magnetically or optically coded data that can be changed. Typically found in card keys.
Social Audit A report on the social performance of a business.
Social Obligation The obligation of a business to meet its economic and legal responsibilities.
Social Responsibility A belief that, as organizations and managers function, their decisions should be made within the confines of both social and economic considerations.
Social Responsiveness The capacity of a firm to adapt to changing societal conditions.
Socialism An economic system in which much ownership is private, but the government controls the operation and direction of basic industries.
Socioeconomic View The view that management’s social responsibility goes well beyond the making of profits to include protecting and improving society’s welfare.
Soft Goods Consumer goods usually identified with the clothing industry but may also include, bedding, piece goods, towels and draperies.
Software Customization Creation or modification of a commercially available software package based on a specific customer’s needs.
Soldier’s and Sailor’s Relief Act A Federal act also passed by various states, under which the right to legally enforce an obligation against a person is suspended during the period such a person is in the military service, or for a period thereafter.
Sole Proprietorship An unincorporated business owned by one individual.
Solvency (Long-Term) Having sufficient cash and cash sources at times when long-term obligations and claims (bonds, pensions) become due.
Solvency or Leverage Ratios Measure a firm’s ability to meet long-term obligations. They include debt to assets, debt to equity, and financial leverage ratios. Used to measure the financial soundness of a company.
Source and Use of Funds Statement A statement accounting for the increases and decreases in a company’s net working capital throughout an accounting period.
Source Code A computer program in the form produced by the programmer, later translated automatically into object code for execution by a computer.
Span of Control The number of subordinates a manager can direct efficiently and effectively.
Special Drawing Right (SDR) A form of international reserve currency created by the International Monetary Fund; its value is a weighted average of the values of the major national currencies.
Special Endorsement If a check is drawn by A upon B, payable to C, C wishes to negotiate it to D, but in order to preclude the possibility of its loss and subsequent negotiation by a dishonest finder he adds a special endorsement. This may be done simply by endorsing it “pay D” signed C.
Special Journals Journals designed to be used for recording a single type of transaction.
Specialized Assets Assets which can only be used in a specific industry. The value of the asset depends upon the financial health of the industry.
Specialty Advertising Providing frequent reminder items that build good will and keep a firm’s or a product’s name within the prospect’s view.
Specialty Goods Products that buyers prefer strongly because of their unique characteristics or image.
Specialty Store A store that offers many models or styles of a specific product.
Specific DSS Systems designed to support a specific decision process.
Specific Performance A remedy in personam in equity that compels performance of a contract to be substantial enough to do justice among the parties. A person who fails to obey a writ for specific performance may be put in jail by the equity judge for contempt of court. The remedy applies to contracts involving real property. In the absence of unique goods or peculiar circumstances, damages generally are an adequate remedy for breach of contracts involving personal property.
Specific Plans Plans that are clearly defined and leave no room for interpretation.
Speculative Risk A situation that may cause loss or gain.
Spreadsheets Software packages that allow users to turn a computer’s memory into a large worksheet in which data and formulas can be entered to perform a variety of calculations.
Stability Strategy A corporate-level strategy characterized by an absence of significant change.
Staff Authority Authority that supports, assists, and advises holders of line authority.
Staff Functions Refers to people or positions that provide an advisory, control, or support role to the organization.
Stagflation A contraction of a nation’s output accompanied by inflation.
Stakeholders Any constituency in the environment that is affected by an organization’s decisions and policies.
Stale Check A check that has been held too long after being issued. Such a check will not be honored when presented for payment. The time period is usually set by state law.
Standard Costs A detailed estimate of what a product should cost.
Standard Costs Systems Accounting systems that use standards for each element of manufacturing costs entering into the finished product.
Standard Industrial Classification (SIC) Commonly referred to as SIC code. Each four digit code represents a unique business line.
Standby Letter of Credit The beneficiary holds a letter of credit that expires at a future time, but generally bills the customer for goods in the normal course of business, and tenders the letter of credit only on default of payment of invoices according to credit terms.
Standing to Sue The doctrine that requires the plaintiff in a lawsuit to have a sufficient legal interest in the subject matter of a case.
Stare Decisis “Stand by the decision.” The law should adhere to decided cases.
Stated Objectives Official statements of what an organization says–and what it wants various publics to believe–are its objectives.
Stated Value A value approved by the board of directors of a corporation for no-par stock.
Statement of Account Lists the invoices outstanding and due for payment, is widely used as an initial collection effort.
Statement of Affairs A debtor is required to file a schedule in a bankruptcy which lists: assets, creditors, leases, executory contracts, and other relevant information to enable a trustee or creditor to determine how a case should be conducted.
Statement of Cash Flows A summary of the major cash receipts and cash payments for a period.
Statement of Changes in Financial Position A statement accounting for the increases and decreases in a company’s net working capital throughout an accounting period.
Statement of Changes in Retained Earnings A statement that reconciles the beginning-of-period and end-of-period balances in the retained earnings account. It shows the effects of earnings, dividend declarations, and prior period adjustments.
Statement of Owner’s Equity A summary of the changes in an owner’s equity of a business that have occurred during a specific period of time.
Statement of Stockholders’ Equity A summary of the changes in stockholders’ equity of a corporation that have occurred during a specific period of time.
Static Budget A budget that does not adjust to changes in activity levels.
Status Quo The conditions or state of affairs at a given time.
Statute A law passed by the legislative body of the state.
Statute of Frauds A term applied to various statutes requiring agreements to be in writing.
Statute of Limitations A law which limits the length of time within which a law suit must be commenced or the right to sue is lost.
Statutory Law A written body of rules created and approved by a group of persons (a legislator), which presumably expresses the will of the citizens it represents.
Stay To postpone or hold in abeyance. An order of the court “to stay” a judgment is to hold off or to stop it from being enforced.
Stipulation To specify the terms of an agreement.
Stock Shares of ownership of a corporation.
Stock Certificates Documents that provide legal evidence of ownership of shares in a corporation.
Stock Dividend Distribution of a company’s own stock to its shareholders.
Stock Option Gives an employee the right to buy stock in the company, usually at a favorably fixed price for a period of time.
Stock Split A subdivision of shares already issued, done to decrease a stock’s high market price to an amount that more investors can afford to pay. This is accomplished through the issuance of a proportionate number of additional shares.
Stockholders A corporation’s owners but frequently not the individuals who control and manage the firm day by day.
Stockholders’ Equity The balance sheet section that shows owners’ claims against a corporation.
Stockout The point at which inventory levels reach zero and inventory demand exceeds supply.
Stop Payment Order Instructions given the depositor’s bank to refuse payment on a previously issued check.
Stoppage in Transit Upon learning of the insolvency of a buyer of goods, the seller has the right to stop the goods in transit, and hold them as security for the purchase price. The right is an extension of the unpaid seller’s lien.
Straight Life Insurance Whole life insurance in which premiums are paid until the insured’s death.
Straight-Line Depreciation A method of depreciation that provides for equal periodic depreciation expense over the estimated life of an asset.
Strategic Business Unit (SBU) A single business or collection of businesses that is independent and formulates its own strategy.
Strategic Financial Analysis Analyzing competitors’ financial statements with the goal of analyzing the strengths and weaknesses of competitors.
Strategic Group Business unit with a clearly identified and separate strategy.
Strategic Information Systems Information systems that play a major role in a product’s value chain.
Strategic Planning The development of a long-range course of action to achieve business goals.
Strategic Plans Plans that are organization-wide, establish overall objectives, and position an organization in terms of its environment.
Strategies The means by which business goals and objectives will be achieved.
Strategy (Types) See “business-level strategy, combination strategy, corporate-level strategy, cost-leadership strategy, focus strategy, functional-level strategy, pull strategy, push strategy, retrenchment strategy, stability strategy”
Stratified Random Sample One that divides the universe into subcategories according to one or more characteristics and chooses randomly from within the subcategories being examined.
Straw Buyer An individual, real or fictitious, who reportedly buys a business prior to its insolvency.
Strict Liability The doctrine under which a party may be required to respond in tort damages, without regard to that party’s use of due care.
Strikes Temporary work stoppages by employees to protest certain work conditions and reinforce demands for their correction.
Strong-Arm Clause Under the Bankruptcy Code, the trustee has the right and power to avoid certain transfers of property of the debtor and certain obligations of the debtor.
Structural Deficit A measure of what the federal budget deficit would be if the economy was producing its potential level of output.
Structural Unemployment Unemployment that arises because the skills demanded by employers do not match the skills of the unemployed or because the unemployed do not live where the jobs are located.
Structured Analysis A series of guidelines and graphical communication tools for describing existing and proposed systems for users, manager and analysts.
Structured Decision Systems Systems that structure repetitive execution decisions, often classified with decision support systems.
Structured Deposits Bank deposits arranged in denominations less than $10,000 to avoid Currency Transaction Reports (CTR)
Structured Task A task so well understood that it is possible to specify exactly how to perform it.
Subjective Performance Appraisal System Based on the personal viewpoint of the manager.
Subordinate In the case of a secured interest, the secured party may agree to make his security interest inferior to another security interest.
Subordination (Agreement) Is commonly used when a bank makes a loan to a corporation that already has loans outstanding to principal officers. The bank requires the officers to execute a subordination agreement stating that if the corporation fails, they will not collect on their notes from the corporation until the bank has collected on its notes. Thus, the officers subordinate their position to that of the bank.
Subpoena A process issued out of a court requiring the attendance of a witness at trial.
Subrogation The substitution of one person in another’s place, whether as a creditor or as a possessor of any lawful right, so that the substituted person may succeed to the rights, remedies, or proceeds.
Subsidiary Company The corporation that is controlled by a parent company.
Subsidiary Ledger A ledger containing individual accounts with a common characteristics.
Substantial Performance The complete performance of all the essential elements of a contract. The permissible omissions or derivations are those that are trivial, inadvertent, and inconsequential.
Substantive Law Law that regulates and controls the rights and duties of all persons in society.
Substitutes Goods that are related in such a way that an increase in the price of one, leads to an increase in demand for the other.
Succession A transfer by operation of law of all rights and obligations of a deceased person to those who are entitled to them.
Successive Decomposition A problem solving strategy of breaking problems into successively smaller subproblems.
Sum-of-the-Years-Digits Depreciation A method of depreciation that provides for declining periodic depreciation expense over the estimated life of an asset.
Summary Judgment A judicial determination that no genuine factual dispute exist and that one party to the lawsuit is entitled to judgment as a matter of law.
Summons A writ issued by a court to the sheriff, directing him to notify the defendant that the plaintiff claims to have a cause of action against the defendant and that he is required to answer. If the defendant does not answer, judgment will be taken by default.
Sunk Cost A cost that is not affected by subsequent decisions.
Supercomputer A specialized high-speed computer used for lengthy calculations rather than for processing transactions or generating reports.
Supermarket A store that sells a wide variety of food items.
Superstore A retailer that carries a massive variety of products.
Supply The quantity of a product that producers are willing to make available at a given price.
Supply-Side Economics Macroeconomics policy that focuses on the use of tax cuts to stimulate production so as to increase aggregate supply.
Support Activities Activities in an organization that support its primary activities, but do not directly create the value received by the customer.
Supremacy Clause Article 6 of the U.S. Constitution which states that the constitution, laws, and treaties of the U.S., shall be the supreme law of the land and shall take precedence over conflicting state laws.
Surety A person who agrees to be liable for the debt or contractual obligations of another.
Surety Bond Insurance that guarantees that a contract will be completed.
Surplus Corporation net worth portion in excess of capital stock; also a financial situation where income exceeds expenses.
Surplus Lines Coverage Insurance for risks on which no law of large numbers exist. There is little or no history on the risk, the likelihood of loss, or the amount of financial damage that the risk-taker may incur if it becomes a loss.
Suspends Payments Under Article 4 Bank Deposits And Collections, with respect to a bank this means that it has been closed by order of the supervisory authorities, that a public officer has been appointed to take it over or that it ceases or refuses to make payments in the ordinary course of business.
SWOT Analysis Analysis of an organization’s Strengths and Weaknesses, and its environmental Opportunities and Threats in order to identify a niche that the organization can exploit.
Symbolic View The view that management has only a limited effect on substantive organizational outcomes because of the large number of factors outside of management’s control.
Syntax Error A type of “bug” involving incorrect use of the programming language.
System The set of interacting components (including organizations, people, machines, software and other systems) that operate together to accomplish a purpose.
System Acceptance Testing The final testing by users to decide whether they accept a new system.
System Conversion Testing The testing process during and after converting from a previous system to a successor system.
System Cost of Ownership A cost of implementing, operating, and maintaining a system.
System Implementation Planning The development of a training plan, conversion plan and acceptance testing plan.
System Life Cycle The initiation, development, implementation and operation/maintenance of a business system.
System Recovery The restoration of a database to the state it was in when a problem stopped further data processing.
System Testing The testing of an entire system after individual programs have been tested.
System Training Plan Plan for the teaching of the day to day transaction processing and analytical use of an unfamiliar system.
Systems Analysis and Design The process of defining a problem, gathering pertinent information, developing alternative solutions and choosing among those solutions.
Systems Approach A theory that sees an organization as a set of interrelated and interdependent parts.
Systems Cost The sum of MIS production and data center hardware, software development, programming, computer maintenance expenses and other allocated costs.

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