Absolute Advantage
DefinitionIn economics, the principle of absolute advantage refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources. Adam Smith first described the principle of absolute advantage in the context of international trade, using labor as the only input. Absolute Advantage What is...
Absolute Physical Life
What is 'Absolute Physical Life' The length of time that it takes for an asset takes to become fully depreciated, at which time it provides no additional use. The absolute physical life is often taken into consideration when companies purchase assets. The measure is typically associated with assets that have low risk of becoming technically obsolete. ...
Accelerated Death Benefit (ADB)
What is an 'Accelerated Death Benefit - ADB' An accelerated death benefit (ADB) is a benefit that can be attached to a life insurance policy that enables the policy holder to receive cash advances against the death benefit in the case of being diagnosed with a terminal illness. Many individuals who choose the accelerated death benefit have...
Ability-To-Pay Taxation
What is 'Ability-To-Pay Taxation' Ability-to-pay taxation is a progressive taxation principle that maintains that taxes should be levied according a taxpayer's ability to pay. This progressive taxation approach places an increased tax burden on individuals, partnerships, companies, corporations, trusts and certain estates with higher incomes. The theory is that individuals who earn more money can afford to...
Annuity
An annuity can be best defined as a financial product which is exclusively designed and offered by insurance companies to help individuals grow funds. In other words, it is developed to offer or pay out individuals a stream of steady cash payments over time. It provides individuals a reliable channel of securing a stable cash flow, especially when they...
Accelerated Vesting
What is 'Accelerated Vesting' A form of vesting that takes place at a faster rate than the initial vesting schedule in a company's stock option plan. This allows the option holder to receive the monetary benefit from the option much sooner. If a company decides to undertake accelerated vesting, then it may expense the costs associated with...
Absolute Interest
What is 'Absolute Interest' Total and complete ownership of an asset or property. An individual with an absolute interest has both a legal and beneficial possession of said asset or property. The term "absolute interest" indicates that the owner's interest is not diluted by another party's ownership, nor is it dependent on conditions that must be fulfilled....
Absolute Title
DefinitionAllodial title constitutes ownership of real property that is independent of any superior landlord. Allodial title is related to the concept of land held "in allodium", or land ownership by occupancy and defense of the land. Historically, much of land was uninhabited and could, therefore, be held "in allodium". Absolute Title What is 'Absolute Title' Title to...
Annual Percentage Rate
DefinitionThe term annual percentage rate of charge, corresponding sometimes to a nominal APR and sometimes to an effective APR, is the interest rate for a whole year, rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate. Those terms have formal, legal definitions...
Absenteeism
DefinitionAbsenteeism is a habitual pattern of absence from a duty or obligation without good reason. Generally, absenteeism is unplanned absences. Absenteeism has been viewed as an indicator of poor individual performance, as well as a breach of an implicit contract between employee and employer. It is seen as a management problem, and framed in economic or quasi-economic terms. More...