How Do You Spell LUMP-SUM?

Pronunciation: [lˈʌmpsˈʌm] (IPA)

Lump-sum is a term used to describe a one-time payment of money or a single amount paid in full. The correct spelling of "lump-sum" is /lʌmp sʌm/. The first syllable "lump" is pronounced with a short u sound /ʌ/ and the second syllable "sum" is pronounced with a short u sound followed by the letter m. The hyphen separates the two words and makes it clear that they are combined to form a single compound word. The proper spelling and pronunciation of "lump-sum" are important for effective communication in finance and business contexts.

LUMP-SUM Meaning and Definition

  1. Lump-sum refers to a one-time payment or amount of money that is paid or received in its entirety at once, rather than through installments or periodic payments. It is a fixed, predetermined sum that may be granted or requested for various reasons.

    In financial terms, a lump-sum payment can be an upfront payment for a service rendered or a disbursement made at once instead of being spread out over time. For example, an employee may receive a lump-sum payment as a bonus or severance pay, or an insurance policyholder may opt for a lump-sum payout rather than regular payments.

    In the context of contracts or settlements, a lump-sum payment is a negotiated amount paid in full to settle a debt or a legal claim, usually as an alternative to a structured payment plan. This type of payment can be advantageous for the recipient as it provides immediate access to funds, and may be offered by the payer as a cost-saving measure.

    The term lump-sum can also be used more broadly outside of financial contexts. For instance, it can refer to a single, consolidated amount given for a particular purchase or expense, such as a lump-sum grant for educational purposes or a lump-sum fee for a service contracted.

Common Misspellings for LUMP-SUM

  • lumppsum
  • lump-0sum
  • lump-psum
  • lumpmsum
  • lump-some

Etymology of LUMP-SUM

The term "lump-sum" originated in the mid-16th century and is a combination of two separate words.

1. "Lump" comes from the Old English word "lump", which means a mass or piece. It can also refer to a compact or shapeless form. This word has its roots in the Proto-Germanic word "lumpaz".

2. "Sum", on the other hand, is derived from the Old English word "sum", meaning a quantity or amount. It can also refer to a total or whole.

The combination of these two words, "lump" and "sum", came together to form the term "lump-sum". It is typically used to describe a single, total payment or amount that is paid all at once rather than in installments.

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