What Is a Subsidiary? In the corporate world, a subsidiary is a company that belongs to another company, which is usually referred to as the parent company or the holding company. The parent holds a controlling interest in the subsidiary company, meaning it has or controls more than half of its stock. In cases where a
What Is a Subsidiary Bank? A subsidiary bank is a type of foreign entity that is located and incorporated in a foreign country but is either wholly-owned or owned in a major part by a parent corporation in a different nation. This particular banking model helps the parent company avoid unfavorable regulations enforced by the home country.
What Is a Subsidy? A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (such as cash payments) or indirect (such as tax breaks). The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall
What Is a Substandard Insurance? An individual who may not qualify for a standard insurance policy may receive a substandard insurance policy from an insurance provider. Substandard insurance policies contain special or restrictive provisions and will have higher premiums due to the higher risk posed by the individual. Since they are considered a higher risk, it increases the probability
What Is Substantial Gainful Activity (SGA)? Substantial gainful activity (SGA) represents the monthly threshold salary used by the U.S. Social Security Administration (SSA) to qualify individuals for disability benefits. The SSA updates the dollar amount annually to reflect inflation (or rising prices) and generally maintains a higher threshold for statutorily blind individuals. Key Takeaways The
What Is a Substitute? A substitute, or substitutable good, in economics and consumer theory refers to a product or service that consumers see as essentially the same or similar-enough to another product. Put simply, a substitute is a good that can be used in place of another. Substitutes play an important part in the marketplace and are
What Are Substitute Checks? Substitute checks are copies of checks used by banks in lieu of the original. This practice was made legal by the Check Clearing for the 21st Century Act in 2003, better known as the Check 21 Act. Provided that the copy includes both the front and the back of the original
What Is the Substitution Effect? The substitution effect is the decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives when its price rises. A product may lose market share for many reasons, but the substitution effect is purely a reflection of frugality. If a brand raises its price
A subvented lease is a type of lease in which the entity offering the lease reduces the cost through some subsidy. Subvented leases are commonly offered in car leasing contracts. Key Takeaways A subvented lease offers a lessee the opportunity to rent an asset that has been made more affordable via a subsidy.A common marketing
What Is Succession Planning? The term succession planning refers to a business strategy companies use to pass leadership roles down to another employee or group of employees. Succession planning ensures that businesses continue to run smoothly and without interruption, after important people move on to new opportunities, retire, or pass away. It can also provide
