Archives: Terms

Definition of Settlement Risk Settlement risk, also known as delivery risk or Herstatt risk, is the risk that one party will fail to deliver the terms of the contract with another party at the time of settlement. This type of risk often arises in financial transactions, including currency exchanges and […]

Definition of Settlement A settlement in economics refers to the process by which a transaction is completed or finalized. This involves the transfer of assets (such as money, securities, or commodities) from one party to another following the execution of a trade or agreement. Settlements ensure that the seller receives […]

Definition of Set-Aside Set-aside programs are initiatives most commonly found in agricultural and public contracting sectors where a portion of resources, land, or contract opportunities is reserved or “set aside” for specific purposes or for certain groups. The primary aim is to promote fairness, economic opportunities, and to serve public […]

Definition of Services Services are intangible acts or performances offered by one party to another without the ownership of any physical elements. Unlike goods, which are tangible and can be stored or inventoried, services are consumed at the point of delivery. They range from professional services like healthcare, legal advice, […]

Definition of Service Industry The service industry, also referred to as the tertiary sector, encompasses various businesses and activities that provide non-tangible goods and services to consumers and other businesses. Unlike the primary sector, which deals with raw materials, and the secondary sector, which is concerned with manufacturing and construction, […]

Definition of Service Flows Service flows refer to the continuous provision or delivery of services over a period. Unlike tangible goods, which can be produced, stored, and consumed at different times, services are typically consumed at the point of delivery. This makes service flows a critical component of the service […]

Definition of Service Contract A service contract, also known as a service agreement or a service-level agreement (SLA), is a legally binding agreement between two parties in which one party agrees to provide a specified service to the other. This contract details the nature of the service, the duration of […]

Definition of Serial Correlation Serial correlation, also known as autocorrelation, occurs when the residuals, or errors, in a regression analysis are correlated with each other. In simpler terms, it means that the error terms from different time periods or observations are not independent. Serial correlation can signal that the model […]

Definition of Sequestration Sequestration, in an economic context, refers to the legal process of seizing and temporarily holding property or funds until a debt is paid or a court order is fulfilled. It can also pertain to automatic spending cuts in the federal budget, enforced if government spending exceeds set […]

Definition of Separation of Ownership and Control The separation of ownership and control refers to the division between the shareholders who own the company and the management who control its day-to-day operations. This occurs predominantly in large corporations where the scale of operations makes it impractical for the owners (shareholders) […]