S

SALARIED EMPLOYEE

An employee who is paid a SALARY. Distinguished from an employee who is paid for each hour of service (an HOURLY EMPLOYEE).

SALARY

A fixed payment to an employee at regular intervals for service; especially professional service. Distinct from an HOURLY WAGE, salary is usually paid weekly, semi-monthly or monthly.

SALE

In general, any exchange of goods or services for money. In retail sales jargon, a discount. In finance, income received in exchange for goods or services recorded in the accounting books for a given period, either on a cash (as received) or on an accrual basis (as earned).

SALE-LEASEBACK

A financing technique whereby an owner of an asset sells the asset to another party and immediately leases the asset from the other party under agreement. This technique would free up capital that was invested in the asset and also allow write-off of the lease expenditures as an operating expense.

SALES

The sum of more than one sale. In accounting, often used interchangeably with income or revenue. See also GROSS SALES; NET SALES. In retail, often refers to products offered for sale at less than the originally stated price.

SALES CONTRACT

A written agreement between a seller and a buyer to exchange a product or service for money.

SALES CYCLE

The period of time when most sales are made and the period of time when least sales are made. As an example, retail merchandise sales are high just prior to Christmas and lower in the early part of each year. Or lawn mowers sell best in Spring and early Summer.

SALES FINANCE COMPANY

See ACCEPTANCE COMPANY.

SALES FORECAST

The expected revenues (sales) that can be achieved for a period in the future. The projection is developed by estimating the number of units that will be sold at an average sale price per unit.

SALES INVOICE

See INVOICE.

SALES KIT

An assortment of information, literature and samples of products and services available for sale. The information is organized in a manner that facilitates familiarity by new salespeople so they can quickly begin making sales.

SALESMANSHIP

The art of persuading and convincing people to buy what is offered for sale.

SALESPERSON

Any person employed by a business who makes contact with potential customers, attempting to get them to buy the products or services available for sale.

SALES PROMOTION

The function of the selling process that encourages the movement of merchandise or services from a business to customers or clients. Often involves subtle gimmicks that persuade the customer or client to buy.

SALES TAX

A fee that is payable to a state government and is collected by retailers as a percent of sales made. The retailer acts as an agent for the state Department of Revenue.

SALES TAX-EXEMPT NUMBER

An identification number assigned to not-for-profit corporations allowing them to buy goods without paying sales taxes. A retail business that usually collects sales tax must record this number for a sale made to a not-for-profit organization to verify to the state’s sales tax revenue office that the sale should not have included collection of a sales tax.

SALES TAX IDENTIFICATION NUMBER

The number assigned by a state Department of Revenue to a corporation or a partnership and used for sales tax recordkeeping. The retailer acts as an agent for the state by collecting and remitting the required amount.

SALES TAX I.D. NUMBER

The number assigned by a state Department of Revenue to a corporation or a partnership and used for sales tax recordkeeping. The retailer acts as an agent for the state by collecting and remitting the required amount.

SALES VOLUME

The total amount of revenue (sales) received during a given period (or expected to be received). Sometimes, refers to the quantity of goods sold.

SALES VOLUME RATE

Same as TOTAL ASSETS TURNOVER.

SATISFACTION

The payment of a debt or obligation, especially a judgment; the time when a buyer fully pays a debt and title is transferred from seller to buyer; the completion of all work on a contract.

SBA

The United States Small Business Administration. See SMALL BUSINESS ADMINISTRATION.

SBA 503 LOAN

Long-term fixed asset financing for use in expansion or modernization. Loan requirements: at least 10% equity and a loan up to 90 percent by a federal financing company that includes an SBA guarantee. Similar to SBA 504 LOAN.

SBA 504 LOAN

Long-term fixed asset financing for use in expansion or modernization. Loan requirements: at least 10% equity and a loan up to 90% by a private Certified Development Company backed by an SBA guarantee. Similar to SBA 503 LOAN.

SBA LOAN GUARANTEE

A promise by the U.S. Small Business Administration to reimburse a bank for money lost due to failure by a borrower to repay. Only selected banks are eligible for the program.

SBDC

See SMALL BUSINESS DEVELOPMENT CENTER.

SBI

See SMALL BUSINESS INSTITUTE.

SBIC

See SMALL BUSINESS INVESTMENT COMPANY.

SBIR

See SMALL BUSINESS INNOVATION RESEARCH.

SCHEDULE C

The supplementary tax form, as a part of federal income tax Form 1040, used for reporting gains or losses from a sole proprietorship.

SCOPE OF WORK

A description of work that is to be performed; the document that completely describes the tasks necessary for performing a service; a definition of the services to be performed; what and how the service job is to be done.

SCORE

See SERVICE CORPS OF RETIRED EXECUTIVES.

S.C.O.R.E.

See SERVICE CORPS OF RETIRED EXECUTIVES.

S-CORP.

See S-CORPORATION.

S-CORPORATION

A corporation that is taxed as a PARTNERSHIP by the INTERNAL REVENUE CODE, provided it has 25 or fewer shareholders and meets certain other requirements. Thus a small corporation can distribute income directly to shareholders, avoiding the corporate income tax but enjoying the advantages of the corporate form. An S-Corporation avoids the double taxation of corporate ownership. Also known as SUBCHAPTER S-CORPORATION; TAX-OPTION CORPORATION; SMALL BUSINESS CORPORATION. See also CORPORATION.

SDB

See SMALL DISADVANTAGED BUSINESS.

SEASONAL

Describing a business that has prosperous times and unprosperous times related to the seasons of the year. Also, seasonal is sometimes used interchangeably with cyclical even though not directly related to seasons of the year.

SEASONALLY ADJUSTED

An amount that has been computed to account for a SEASONAL VARIATION, so that this amount can be evaluated on an equivalent basis with amounts in other periods. If all other factors are equal, seasonally adjusted values would be the same for each period.

SEASONAL VARIATION

Regular pattern of economic activity associated with custom or weather over the course of a year.

SEC

See SECURITIES AND EXCHANGE COMMISSION.

SECONDARY FINANCING

Other collateral provided by a borrower to obtain a loan.

SECONDARY LIABILITY

Agreement by a corporate shareholder to be financially responsible for a corporate debt if the corporation fails to repay.

SECONDARY MARKET

The resale of products or debt securities to another party; the ability to resell such items to other customers.

SECOND MORTGAGE

A loan secured by real estate that is junior (subordinate) to a FIRST MORTGAGE; a mortgage that is recorded after a first mortgage; a second loan on real estate. In case of default, the first mortgage holder would be paid before payment to a second mortgage holder. See FIRST MORTGAGE.

SECOND ROUND

An intermediate stage of VENTURE CAPITAL financing. See VENTURE CAPITAL.

SECOND STAGE

See SECOND ROUND.

SECRETARY

An EXECUTIVE officer of a company having the responsibility for keeping the records of the company in proper order; takes the minutes of meetings, keeps records of the shareholders, etc. A clerical job involving routine paperwork, correspondence, typing, files, dictation and other work. A person in charge of a government department; such as Secretary of State.

SECURED

A debt obligation that is guaranteed by a pledge of assets or other COLLATERAL. If the debt is not repaid, the holder of the note may take title to the asset that was used as collateral.

SECURED DEBT

A loan that is backed by collateral. See SECURED.

SECURED LOAN

A loan that is backed by collateral. See SECURED.

SECURITIES

The total group of documents that promise to pay money, earnings or dividends in exchange for investment risks taken by ownership or lending money. See SECURITY.

SECURITIES AND EXCHANGE COMMISSION

A federal government body that regulates the securities industry.

SECURITY

A document evidencing COLLATERAL for money loaned. Also, an instrument that promises to pay money, earnings or dividends by participation in or ownership of a corporation, trust or other property, such as STOCK or BOND. Securities are usually negotiable and therefore are regulated by both state and federal law. To prevent fraud, illegal acts and unsubstantial schemes, transactions in which promoters go to the public for risk capital are monitored. PERSONAL SECURITY is the guarantee by one person to repay another person’s debt.

SECURITY AGREEMENT

A document that creates a lien upon personal property (chattels), filed on a FINANCING STATEMENT (Form UCC-1) in accordance with the Uniform Commercial Code.

SEED CAPITAL

See SEED MONEY.

SEED CAPITALIST

A VENTURE CAPITALIST who invests in an early stage of a new company or new product.

SEED FINANCING

See SEED MONEY.

SEED MONEY

Initial contributions of financing for START-UP businesses. Seed money provides the basis for additional capitalization to accommodate growth. See also MEZZANINE LEVEL; SECOND ROUND; VENTURE CAPITAL.

SEEK A MARKET

To look for a buyer (if you are a seller). Or to look for a seller (if you are a buyer).

SEIZE

To take legal possession of, such as to take ownership of property. Also to assign ownership of; to put in legal possession of a particular thing.

SEIZE COLLATERAL

By a lender, to take legal ownership of property that has been offered by the borrower as security for a loan after the due date for repayment.

SEIZE THE COLLATERAL

By a lender, to take legal ownership of property that has been offered by the borrower as security for a loan after the due date for repayment.

SELF-EMPLOYED

Working for oneself.

SELF-EMPLOYMENT TAX

The tax paid by a sole proprietor for old age and survivor benefits.

SELF-INSURANCE

Having the financial capacity to withstand a financial loss and recover without the backup of another party, such as an insurance company.

SELL

To exchange goods or services for money or to offer for sale regularly. SELLER’S MARKET A market situation characterized by demand that exceeds supply. Higher prices are often found because of the limited amount of competition and the limited quantity of products or services available for sale. Thereby, sellers can raise prices; buyers are willing to pay the premium price.

SELLING EXPENSE

The cost of acquiring customers, enticing them to buy, delivery of the product or service and collection of the amount paid.

SEMIANNUAL

Occurring twice a year; BIANNUAL.

SEMI-VARIABLE COST

A cost that has both a fixed and a variable component; a cost that is not truly a FIXED COST but is also not truly a VARIABLE COST. See FIXED COST; VARIABLE COST.

SERVICE

In business, the employment of human effort to tasks such as repair, maintenance and transportation, where the result is other than a physical PRODUCT, GOODS or MERCHANDISE. In lending, the procedures, paperwork and effort associated with collection of amounts owed; the cost of this work.

SERVICEABILITY

The ability of a product to perform the designed functions. Also, the ease of repairing a product.

SERVICE BUSINESS

A retail business that engages in labor tasks for the benefit of others for a fee; performs a SERVICE.

SERVICE CHARGE

A fee required to be paid for the handling of an account, usually for unusual or costly procedures; a cost (charge) for service rendered.

SERVICE CORPS OF RETIRED EXECUTIVES (SCORE)

A national not-for-profit organization of retired former small business owners, professionals and managers who provide free counseling to small businesses under the sponsorship of the U.S. SMALL BUSINESS ADMINISTRATION. SERVICE LIFE See ECONOMIC LIFE; USEFUL LIFE.

SERVICE-ORIENTED BUSINESS

A company whose primary function is to perform labor tasks for customers; as opposed to a PRODUCT-ORIENTED BUSINESS.

SETTLEMENT

The act of finalizing all factors affecting a transaction, such as credits, charges, costs and fees; to complete a transaction; to conclude a transaction.

SHAKEOUT

A situation that occurs when a market cannot support all the sellers, forcing some to drop out of that market. The strong sellers survive and the weak sellers cease to sell (shakeout).

SHARE

In business, a unit of equity ownership in a corporation and sometimes a limited partnership. This ownership is represented by a STOCK CERTIFICATE issued by the corporation in the name of the person owning the share. Two types are used: COMMON STOCK and PREFERRED STOCK. PAR VALUE represents the equivalent dollar amount equal to one share’s value. See STOCK; COMMON STOCK.

SHAREHOLDER

A person or organization that owns one or more shares of stock in a corporation; ownership is confirmed by being issued a STOCK CERTIFICATE. Shareholders’ rights are defined in the ARTICLES OF INCORPORATION and the BYLAWS. Also called STOCKHOLDER.

SHAREHOLDER’S EQUITY

The collective ownership in a corporation represented by total ASSETS minus total LIABILITIES. Also called NET WORTH, EQUITY, stockholder’s equity.

SHARE OF STOCK

See SHARE.

SHARE THE RISK

A situation where more than one person or company participates, each assuming part of the risk of loss. Usually, the assumption of loss risk is proportional to the proportion of invested capital.

SHELTER

See TAX SHELTER.

SHIPPING

The transportation of products from one location to another, usually from buyer to seller. Also means the cost of the transportation expense or the department of the company responsible for this function.

SHIPPING CHARGES

The cost of the transportation expense for delivery of products from seller to buyer.

SHOPLIFTER

A person who steals from a retail store.

SHOPLIFTING

Theft by SHOPLIFTERs.

SHORT-RANGE

A term used in business planning for a period of time that is one year or less; sometimes including less detailed planning for a second year in the future. Monthly and quarterly assessment of progress is used for management control. As opposed to LONG-RANGE which is three or more years.

SHORT-RANGE PLAN

A BUSINESS PLAN covering a period of one or two years.

SHORT-TERM

In business situations, short-term usually means one year or less. On a balance sheet, assets held less than one year are called CURRENT ASSETS; loans or trade credit due in one year are called CURRENT LIABILITIES. In investing, securities, stocks and bonds held for one year or less are short-term and are taxed as short-term capital gains. However, sometimes securities held six months or less are defined as short-term capital gain for taxing purposes. Short-term in planning is one year, although sometimes extends to three years. See INTERMEDIATE-TERM; LONG-TERM.

SHORT-TERM BORROWING

See SHORT-TERM DEBT.

SHORT-TERM CAPITAL GAIN

A CAPITAL GAIN resulting from holding an asset for a period less than one year. See CAPITAL GAIN.

SHORT-TERM DEBT

All debt obligations (loans, trade credit, etc.) coming due within one year; shown on a balance sheet as CURRENT LIABILITIES. See also CURRENT LIABILITIES.

SHORT-TERM LOAN

See SHORT-TERM DEBT. SHRINKAGE In retail, the difference between book INVENTORY, as kept in the books of account, and an actual physical count of the merchandise, often the result of employee theft, SHOPLIFTING or spoilage.

SIC CODE

See STANDARD INDUSTRIAL CLASSIFICATION.

SIGHT DRAFT

SEE DRAFT.

SIGNATURE

A person’s name written by himself or herself; also a representation of this in a mark, stamp, type, print or deputy’s handwriting.

SIGNATURE GUARANTEE

Verification by a bank official that the signature is that of the person writing his or her name.

SIGNS

Printed display boards frequently used to indicate the availability of products or services that are being offered for sale. Signs are of all shapes and sizes, from store window signs to large billboards along major traffic routes.

SILENT PARTNER

An investor in the business who is not active in its daily operation.

SIMPLE INTEREST

The amount of money received from an investment for a period (usually a year); the investment amount times the SIMPLE INTEREST RATE equals the simple interest received. The money is paid in cash or by check and usually is not added to the invested amount, as opposed to COMPOUND INTEREST. See INTEREST; COMPOUND INTEREST.

SIMPLE INTEREST RATE

The annual percentage value used in calculation of SIMPLE INTEREST. Calculated as the additional amount of money received divided by the initial investment amount and expressed as a percent. As opposed to COMPOUND INTEREST RATE.

SINKING FUND

A type of savings scheme by a company; a separate account into which entries (deposits) are made regularly that will be used later for a specific purpose, i.e., to purchase equipment. This method is used because it is sometimes difficult to have the necessary cash available for large purchases.

SITE

A location set aside for a particular use; a plot of ground where the business is situated, or will be located.

SITE RATING

An evaluation and scoring of various business locations to determine the desired location.

SITE SELECTION

The process of evaluating locations for the business and choosing the best alternative.

SKIMMING

An illegal practice wherein an owner may steal a portion of the revenues before they appear on the books. A retailer, for instance, could use cash illegally for purchases without recording either the sale or the purchase.

SKIP ACCOUNT

A PERSONAL ACCOUNT wherein the buyer owing money cannot be found to collect the payment or repossess the goods.

SKU

See STOCKKEEPING UNIT.

S.L. DEPRECIATION

See STRAIGHT-LINE DEPRECIATION.

S.L. METHOD

See STRAIGHT-LINE DEPRECIATION.

SMALL BUSINESS

A small business is one that is independently owned and operated, is not dominant in its field and is limited by employment or sale amounts. Yet SMALL BUSINESS, as defined by the U.S. Small Business Administration, has many size definitions depending on the industry, purpose and usage, varying from 100 to 500 employees or from $0.5 to $17.0 million in sales. A most common definition: less than 500 employees. The SBA publishes precise definitions in each category; further, the SBA does not qualify some businesses for loans even though they are small, such as the media, gambling, speculation, real property investment, real property sales, and recreation or amusement enterprises not open to the public. By the SBA definition, 99 percent of all businesses are small.

SMALL BUSINESS ADMINISTRATION (SBA)

A federal government agency created to administer the federal government’s program for the preservation, development and encouragement of small business concerns. The SBA is supervised by an administrator appointed by the President. Among other things, the SBA is authorized to make loans to small businesses to finance all aspects of the operation. Most often, the SBA guarantees the loan of a private lender. But the SBA may make loans directly to an individual business where warranted.

SMALL BUSINESS INCUBATOR

See INCUBATOR.

SMALL BUSINESS INNOVATION RESEARCH (SBIR)

A U.S. Small Business Administration program that requires other agencies of the federal government to set aside research or R&D contracts to be awarded competitively to small businesses. Product or process awards can be made in three phases: PHASE I: To evaluate scientific and technical merit and feasibility of an idea. Awards can be up to $50,000 and for a period of performance up to six months. PHASE II: A follow-on award to expand on the successful results of PHASE I and further pursue development. Awards can be made up to $500,000 and a period of performance up to two years. PHASE III: The commercialization of the results of PHASE II funded entirely with private funds, i.e., no government funding is permitted in PHASE III.

SMALL BUSINESS INSTITUTE (SBI)

A service sponsored by the U.S. Small Business Administration that provides confidential and professional management guidance by a college to small businesses at no cost to the small business. The service is performed by University Schools of Business by graduate students and seniors under the guidance of a faculty advisor.

SMALL BUSINESS INVESTMENT COMPANY (SBIC)

A federally-funded, private venture capital company that is licensed by the SBA and that usually provides capital for expansion of newer firms producing high-tech products or services.

SMALL BUSINESS WEEK

An annual event of one week duration sponsored by the U.S. Small Business Administration to honor small businesses. A national event is held in Washington, D.C.; various other cities conduct their own celebrations.

SMALL-CAPS

Small companies; companies with a small amount of capital.

SMALL DISADVANTAGED BUSINESS (SDB)

A business, as defined by the U.S. SMALL BUSINESS ADMINISTRATION, that is small and also is owned more than 51 percent by a person who has a disability or is economically depressed due to race, color or sex.

SMART CARD

A plastic wallet-sized card containing an imbedded integrated computer chip for storing information and for performing calculations.

SOCIAL SECURITY

A federal government program covered by the FEDERAL INSURANCE CONTRIBUTIONS ACT (FICA) wherein mandatory contributions are made by employees and their employers for old age and survivor financial assistance.

SOCIAL SECURITY ADMINISTRATION

An agency of the federal government that administers the laws governing the mandatory federal retirement compensation program; enforcer of the FEDERAL INSURANCE CONTRIBUTIONS ACT (FICA).

SOCIAL SECURITY NUMBER

The identification number issued for recordkeeping purposes by the Social Security Administration to all citizens of the United States.

SOFT CURRENCY

Money (CURRENCY) from a country that is not economically and politically stable, or in which there is not widespread confidence in the exchange rate. The governments of such countries set an unrealistically high exchange rate, and the exchange rate is not backed by gold. As contrasted with HARD CURRENCY.

SOFT DOLLARS

Payment of a loan or a promise of payment with money that will be received in the future. Soft dollars are considered as money that is not yet in hand but hopefully will be in hand in the future. As opposed to cash or cash equivalent which is in hand. Contrasts with HARD DOLLARS.

SOFT MARKET

A market situation characterized by supply that exceeds demand. Lower prices are often found in order to attract customers. Also called BUYER’S MARKET.

SOFT MONEY

See SOFT CURRENCY.

SOFTWARE

Computer programs; coded instructions to tell the HARDWARE what to do.

SOLE PROPRIETORSHIP

A form of business ownership in which one person owns the entire business, earns all profits and assumes all losses. As contrasted with corporate or partnership businesses. Taxes for a sole proprietorship are reported on IRS Form 1040, Schedule C. See also PROPRIETORSHIP.

SOLVENCY

A state of good financial condition that allows debts and obligations to be repaid when due. As opposed to INSOLVENCY.

SOP

Short for Standard Operating Procedure; basic methods and processes by which business is conducted; used for both a formal and an informal reference.

SOURCES AND APPLICATION OF FUNDS STATEMENT

See SOURCES AND USES OF FUNDS STATEMENT.

SOURCES AND USES OF FUNDS STATEMENT

A financial statement similar to a CASH FLOW STATEMENT that shows: 1) summarized transactions that increase WORKING CAPITAL and 2) summarized transactions that decrease WORKING CAPITAL. For a small business, a CASH FLOW STATEMENT is more meaningful.

SOURCES OF CAPITAL

Businesses and persons who can provide money to start a new business. This money can be in many forms such as EQUITY, CAPITAL, LOAN and VENTURE CAPITAL.

SOURCES OF CASH

In an accounting analysis of CASH FLOW, sources of cash are those transactions that produce or increase the amount of money on hand, such as payment of cash for goods, collection of an account receivable, cash sale of a fixed asset, earnings not paid as dividends (retained earnings). See CASH FLOW.

SOURCES OF INCOME

Those types of activities, such as sales or other revenue, that cause an increase in INCOME.

SPECIAL TARIFF

A TARIFF levied on the basis of some physical unit or count, such as pound, bushel, yard, dozen or thousand.

SPECIFICATIONS

See PLANS AND SPECIFICATIONS.

SPECULATION

Use of CAPITAL with the anticipation of financial gain but with a higher than average probability of loss. The term speculation implies that a business risk can be quantified; yet, because of the higher risk of loss than for an INVESTMENT, the gain is expected to be higher. Speculation differs from gambling, which is based on random outcomes.

SPECULATOR

A person who looks for large risk business ventures with a large anticipated return but also stands a great chance of losing the entire investment.

SPIN-OFF

An independent company or a product that was recently part of a larger entity but now is separate.

SPREADSHEET

A ledger sheet for a company’s financial information, consisting of rows and columns filled with numerical data; a computer presentation of similar data.

SPREADSHEET PROGRAMS

Accounting and financial planning data prepared using computer applications software

SQUARE FOOT COST

See COST PER SQUARE FOOT.

SQUEAKY WHEEL

A term used to describe a situation or person who is so vocal that management attention is drawn to this situation rather than to the situation that will result in the most beneficial outcome.

SRD

See STANDARD RATES AND DATA.

STAFF

The total group of people employed in a business. In larger businesses, staff refers to specialized functions in the business that are not the main line of the business; staff could be people in administrative or accounting functions of a manufacturing business where the main LINE is perhaps computer production.

STAFFING

The tasks of establishing job requirements, recruiting, selecting and hiring desired persons to be employed in a business.

STANDARD INDUSTRIAL CLASSIFICATION CODE (SIC CODE)

A system for classifying businesses based on product or service. Each business is classified by a four digit SIC code for statistical and marketing purposes. A SIC code directory can be found in a local library.

STANDARD INTERNATIONAL TRADE CLASSIFICATION CODE (SITC CODE)

A system for classifying commodities traded in the international marketplace.

STANDARD OF PRACTICE

The ethical and moral rules by which business is conducted; a code of ethics.

STANDARD OPERATING PROCEDURE

See SOP.

STANDARD PRACTICE

Commonly accepted business relationships, procedures or methods used by most businesses in similar situations.

STANDARD RATES AND DATA (SRD)

The bible of the advertising trade containing information about newspapers, magazines, radio, television and other media.

START-UP

The term applied to a business that is just being formed and beginning operation as a business; a new business venture; an entrepreneurial business. In VENTURE CAPITAL parlance, start-up is the earliest stage at which a venture capital investor will provide funds to an enterprise. Investments or loans made at this stage are called SEED MONEY.

START-UP CAPITAL

The amount of money invested in a business by the owner or owners at the beginning of operations. Sometimes stated as the amount needed to begin operation. As opposed to an amount BORROWED, as a LOAN.

START-UP CHECKLIST

A comprehensive and practical list of items that must be considered in order to begin a successful small business. See Self-Help Guide M.

START-UP COST

The amount of expenditures needed to begin a new business venture.

START-UP LOAN

A LOAN made to a beginning business.

STATE

A government body, referring to any one of the 50 states within the United States of America. As opposed to FEDERAL or LOCAL government.

STATE INCOME TAX

A tax paid to a state government as a percentage of the profits of the corporation.

STATEMENT

A summary for customers of the transactions that have occurred, usually over a month period, e.g., a bank statement lists all deposits and withdrawals and provides a running balance. A short form for saying FINANCIAL STATEMENT.

STATEMENT OF CHANGES IN FINANCIAL CONDITION

A document that presents the sources and uses of funds during a specific period. The sources of funds show the origin of incoming money, whereas uses of funds show the destination of the fund expenditures.

STATEMENT OF FINANCIAL CONDITION

See FINANCIAL STATEMENT.

STATE-OF-THE-ART

The most up-to-date thing in its field; on the leading edge of new technology or new knowledge. STATE SALES TAX See SALES TAX.

STATES AND SMALL BUSINESS

A state-by-state directory listing of state offices, programs and recent state legislation affecting small business.

STATE TAX IDENTIFICATION NUMBER

The number assigned by a state’s Department of Revenue to a corporation or a partnership used for recordkeeping purposes. Most states have two such numbers, one for STATE INCOME TAX and one for STATE SALES TAX.

STATE TAX I.D. NUMBER

The number assigned by a state’s Department of Revenue to a corporation or a partnership used for recordkeeping purposes. Most states have two such numbers, one for STATE INCOME TAX and one for STATE SALES TAX.

STATISTICS

Facts or data of a numerical kind that have been assembled, classified and tabulated to present significant information about a given subject. Also, the science of assembling, classifying, tabulating and analyzing such facts and data.

STATUTE

The rules, regulations and codes enacted into LAW by Congress (federal law) or by a state legislature (state law). See LAW.

STATUTE OF LIMITATIONS

A proclamation that defines the time period within which a specific legal action may be taken.

STATUTORY

The nature of, relating to, established by or authorized by a STATUTE.

STATUTORY TAX RATE

The tax rate prescribed by law as the prevailing tax legislation.

STELA

See SYSTEM FOR TRACKING EXPORT LICENSE APPLICATIONS.

STOCK

The collective term that applies to ownership of a corporation and signified by one or more shares (units), such as owning stock in XYZ corporation. COMMON STOCK is the most junior form of ownership; usually carries voting rights at the annual meeting and entitles the holder to dividends paid from corporate earnings. PREFERRED STOCK generally does not have voting rights but has prior claim on assets and earnings over common stock. Inventory of accumulated merchandise or goods on hand in a retail or manufacturing business; the amount available for sale.

STOCK CERTIFICATE

The document issued by a corporation, and sometimes a limited partnership, that identifies ownership in the corporation. Stock certificates are engraved intricately on heavy paper to deter forgery. The document identifies the name of the corporation, the name of the owner (stockholder), the class of stock, par value (if any), number of shares contained in the certificate and attendant voting rights.

STOCKHOLDER

A person or organization that owns one or more shares of stock in a corporation; ownership is confirmed by being issued a STOCK CERTIFICATE. See SHAREHOLDER.

STOCKHOLDERS’ EQUITY

For a corporation, the amount by which assets exceed liabilities. See EQUITY, NET WORTH.

STOCKKEEPING UNIT (SKU)

A standardized numerical method of identifying merchandise including manufacturer, product, size and color, consisting of identifying bars and spaces on hardware items; a BAR CODE.

STOCK REPURCHASE PLAN

A program whereby a company systematically purchases its own shares of stock on the open market then holds the stock certificates in the company treasury.

STOCK SPLIT

An increase in the number of outstanding shares of stock issued by a corporation to existing shareholders without an increase in the amount of investment in SHAREHOLDERS’ EQUITY. The only thing affected is a change in the market value of each share outstanding. Subsequent dividends must be calculated on the new total number of shares outstanding.

STOP LOSS

In insurance, a promise by a reinsurance company that it will cover losses incurred by another insurance company in excess of an agreed amount. In the stock market, an order to a broker to sell stock owned at a SELL price below the current MARKET PRICE. A stop-loss order will automatically sell the stock if the stock price drops to the sell price.

STOP PAYMENT

Revocation of payment on a check after the check has been transferred to the payee but prior to the check being presented to the issuer’s bank for payment. STORE A retail business that sells directly to consumers and, most often, deals in the sale of products.

STORE MONEY

A document issued by a business for money on deposit at the business that permits purchase of goods. Usually, store money is given for a refund rather than cash. Thus the purchaser must return to that store to cash the coupon.

STRAIGHT-LINE DEPRECIATION

A method of COST RECOVERY of a FIXED ASSET (DEPRECIATION EXPENSE) whereby an equal amount is charged each period during the useful life of the asset after allowing for a salvage value. This is the oldest and simplest method of depreciation. Also called S.L. DEPRECIATION. See also ACCELERATED DEPRECIATION.

STRATEGIC PLAN

A document that describes the use of STRATEGY in planning the course of future business operations.

STRATEGIC BUSINESS PLAN

A document that describes the use of STRATEGY in planning the course of future business operations.

STRATEGY

A term used in business planning that refers to the overall scheme of masterminding the future course or direction. Strategy implies careful selection and application of resources for the most advantageous position, in anticipation of future events. Also, a trick or scheme for deceiving the competition.

STRAW MAN

A preliminary estimate and presentation of an analysis; a first cut of a document; a preliminary draft. Also, a person other than the principal acting in a business situation.

STRIKE

The refusal of employees to work for a company (or an entire industry) until the employer agrees to their demand for higher wages or other terms or conditions of employment.

STRIKEBREAKER

Workers who are willing to work on jobs currently vacated by workers who are on strike.

STRUCTURE

For business definition, see BUSINESS STRUCTURE.

STUB

That part of a two-part form retained by the preparer as evidence of the transaction. SUBCHAPTER S-CORPORATION See S-CORPORATION.

SUBCONTRACTOR

A business (often in the construction industry) that does not work directly for the customer of a project but rather for another GENERAL CONTRACTOR or prime contractor and performs that part of the work in the subcontractor’s specialty, i.e., a plumbing subcontractor working for a general construction contractor who is building a house for a customer.

SUBORDINATE

In a liquidation situation where one loan is paid first (SENIOR LOAN) in preference to a subordinate loan (JUNIOR LOAN) that would be paid with remaining funds.

SUBORDINATED DEBT

In a liquidation situation where one loan is paid first (SENIOR LOAN) in preference to a subordinate loan (JUNIOR LOAN) that would be paid with remaining funds.

SUBORDINATED LOAN

In a liquidation situation where one loan is paid first (SENIOR LOAN) in preference to a subordinate loan (JUNIOR LOAN) that would be paid with remaining funds.

SUBSCRIPTION

An agreement to buy a new securities issue. Also, the paid contract to purchase a series of issues of a trade magazine over a specified period.

SUBSIDIARY

A company wherein more than 50 percent of the voting shares are owned by another company, the parent company. Thus, the subsidiary is owned and controlled by another PARENT company. See PARENT COMPANY; HOLDING COMPANY; AFFILIATE.

SUBSIDIARY ACCOUNT

In accounting, an ACCOUNT that records all the transactions of a particular type and is not a summary account. When preparing financial statements, all subsidiary accounts pertaining to a specific subject are summarized into a CONTROL ACCOUNT. See ACCOUNT.

SUBSIDIARY LEDGER

A detailed record of an account that is summarized with other similar accounts into a summary ledger entry, called a CONTROL ACCOUNT.

SUBSIDY

Partial payment by a government to a domestic company for goods or services to enhance competitiveness based on the governmental initiative or to minimize the price advantage of imported goods or services. Also called government subsidy.

SUBSTITUTION OF COLLATERAL

A provision in a note that permits the borrower to obtain a release of the original collateral by replacement with other collateral acceptable to the lender. To replace one asset as collateral on a note in exchange for release of an asset which is now listed as collateral. The released asset becomes free and clear of the debt.

SUCCESSION PLANNING

A structured means of training family members or junior employees who will carry on business activity and fill vital positions in a company; a process critical in the event of death of the primary owner.

SUCCESS RATIO

Of a given total of small businesses that begin operations, the percent that survive and continue in business and make a profit. Opposite of FAILURE RATIO.

SUM-OF-THE-YEARS-DIGITS METHOD

A method of ACCELERATED DEPRECIATION that results in higher DEPRECIATION charges and higher tax savings in the early years of a FIXED ASSET’s useful life than the STRAIGHT-LINE DEPRECIATION method. Calculation of the depreciation for each year is on an inverted scale in proportion to the total of all the digits for the useful life.

SUPPLIES

An accounting term describing incidental materials needed in the conduct of business, such as office supplies.

SUPPLY

An economist’s term describing the amount of a product or service that can be traded at each price, as opposed to DEMAND. The amount of materials or provisions available for use; STOCK.

SUPPLY AND DEMAND

The economic theory of market value wherein price is determined by the interaction of opposing seller and buyer forces; namely, the equilibrium price at which sellers are willing to sell a product at the same price a buyer is willing to pay for the product. See DEMAND; SUPPLY.

SUPPLY CURVE

A graphic representation of SUPPLY.

SUPPLY SCHEDULE

A numerical tabulation of the quantitative relationship between quantity supplied and price.

SURETY

A type of insurance company that guarantees execution of an agreement or contract in the form of a PERFORMANCE BOND; one who becomes a grantor for another. Thus if the bonded contractor fails to fulfill the terms of the contract or agreement, the surety will step in and complete the work.

SURETY BOND

See PERFORMANCE BOND; SURETY.

SURETY COMPANY

A business that issues PERFORMANCE BONDS; a SURETY.

SURPLUS

A quantity or an amount that exceeds what is needed or used; that which is left over. Also refers to additional capital. See CAPITAL SURPLUS.

SWEAT EQUITY

A popular expression for equity created by the performance of work or labor by the owner. Usually, little or no salary is taken so the retained earnings build up as equity.

SWINDLE SHEET

Common business jargon for an EXPENSE REPORT.

SYNDICATE

A group of two or more people who are united for the purpose of making and operating an investment, such as a business venture. See also PARTNERSHIP.

SYSTEM FOR TRACKING EXPORT LICENSE APPLICATIONS (STELA)

A Department of Commerce on-line computer program that allows users to access information concerning the status of an export license application.

 

All definitions were taken from www.small-business-dictionary.org.