A contract that becomes enforcable without the signing of any party. For instance, a contract to uphold the copyrights of a book are set in place as soon as the […]

A debt upon which, by agreement between the debtor and creditor, no interest is payable, as distinguished from active debt; i. c., a debt upon which interest is payable. In […]

A company foreign to the United States , which makes most of its money through investments. It must pass the Asset Test or the Income Test. Usually, investors follow differing […]

Any income that is not earned due to a direct acitivity. For instance, income made through rent, a limited partnership or any other passive source. It does not include earned […]

When a portfolio is managed using minimum effort. This occurs when an index seldom moves their assets. Refer to active index strategy and index fund.

An investor in a firm or company who does not take direct part in the management.

When an student gets no response on his learning trend from his instructor, it is known to be passive learning .

Any loss that is incurred due to a passive activity. Examples include loss incurred through rented property, any limited partnership , etc.

Rules limiting tax deductions and income that go untaxed. This is limited by passive source earnings.

A type of management which does not get affected by any changes in the environment . Passive management adheres to a strict agenda.

Measures taken to limit the impact of anything that might have been taken. These are usually taken so as to reduce the effect of any event that happened.

a term given to the negligence that results from failing to act or perform an obligation .

the term for a silent agreement and consent to perform an act that is often illegal. The person who stands by and watches.

When a company unexpectedly retains risk leading to losses. This usually occurs when they are not properly managing their reserves or self insurance . Refer to retention and risk retention

A kind of trust in which the person who is being trusted need not perform any task, and hence, the trust is regarded as a complete title transfer to the […]

Any sentence, or quote, etc. which can be remembered easil. It is used on a common basis as a replacement for a password.

In international law . A document issued to a neutral merchant vessel, by her owu government, during the progress of a war, and to be carried on the voyage, containing […]

Any number of characters, words or alphanumeric data, which can be used as an access key to gain entry in to a computer, any file or program.

A tool which is designed to verify whether the password entered in to a computer is valid or not. It does, however, have integrity flaws, and hence, the passwords can […]

A mistake on the part of an interviewer, or the anchor, which occurs when he/ she rates an employ using their past ratings as a base.

the name that is given to a consideration that is given before a contract is made.

Anything that has not been resolved until its due date.

A loan which has passed its due date. Usually, it is referred to as a ‘ past due loan ‘ when payments fall behind for over a couple of months, […]

Practices that have been established due to common use, making them accepted publicly. Secondly, it is a method of resolving disputes between people, where history is checked to find a […]

The time period in which a person was employed and has provided his services, usually before his pension plan became active. Might result in the exclusion of employee benefits that […]