Asset Substitution Problem

Business / Finance / Asset Substitution Problem: Arises when the stockholders substitute riskier assets for the firm's existing assets and expropriate value from the debtholders.

Other Words for Asset

Asset Noun Synonyms: talent, strength, advantage, resource, benefit
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Other Words for Problem

Problem Noun Synonyms: difficulty, trouble, question, dilemma, quandary, predicament, complication, hornet's nest, imbroglio, mess, muddle, stew, can of worms, fine kettle of fish, (pretty) pickle, facer
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Other Words for Substitution

Substitution Adverb Synonyms: exchange, exchanging, change, changing, replacement, replacing, supplanting, switch, switching, interchange, interchanging, swap or swop, swapping or swopping
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Noncurrent Asset

Business / Finance / Noncurrent Asset: Any asset that is expected to be held for the whole year, not sold or exchanged, such as real estate, machinery, or a patent. MORE

Nonfinancial Assets

Business / Finance / Nonfinancial Assets: Physical assets such as real estate and machinery. MORE

Non-Current Assets

Business / Finance / Non-Current Assets: Assets that are not convertible to cash within one year in the normal course of business. Property and Goodwill are examples of non-current assets. See also current assets. MORE

Net Tangible Assets Per Share

Business / Finance / Net Tangible Assets Per Share: All of a company's assets except patents, trademarks, and other intangible assets minus all liabilities and the par value of preferred stock, divided by the number of shares outstanding. MORE

Net Quick Assets

Business / Finance / Net Quick Assets: Cash, marketable securities, and accounts receivable less current liabilities. MORE

Nonoperating Assets

Business / Accounting / Nonoperating Assets: Investment and other assets not used in a business but held to earn a return separate from operations. MORE

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