Feb
Lump Sum money has various connotations depending on where and when it is used.
For example, a worker in a factory receives daily or weekly or monthly wages depending on his wage contract. That’s a regular flow of income till he stops working. But he may receive some compensation that comes once in a while as an additional income like 'signing in bonus' for agreeing to join the factory to work for the factory for working because he is such a skilled person in high demand and have to shift residence to a place near the factory. This is a lump-sum payment nothing to do with the hours of work he performs on joining. Similarly, some employers pay some extra money to the employees in particular years because the company made extraordinarily large profits. Sometimes, loyal employees who have done outstanding work get cash award of a huge amount of money that they don’t get every month. At the time of retirement, besides usual pension benefits, some employees receive some ex-gratia payment from the company. These are lump-sum income or payments.
Again,sometimes an author of a popular book agrees to take from the publishers a lumpsum payment of a big amount and relinquishes his right to receive royalty at some specified rate for each book printed or sold each edition.
Sometimes, people give lumpsum money as donations to good cause rather than paying regularly a small amount of money every month or every year.
Sometime instead of going to solve a dispute through dilatory and expensive court proceedings, the aggrieved celebration is paid a lump-sum money by the other celebration to settle the dispute once for all. Sometimes, governments impose lump-sum tax on certain sections of rich citizens for funding a war or natural calamity relief work: these taxes are not in proportion to their income or wealth but a fixed once for all same for all tax payers. Mostly indirect taxes like sales tax are a percentage of the goods sold but sometimes there is a lump-sum tax for each unit of the goods sold irrespective of value (whether you sell a high priced cigarette or a low priced cigeratte, you pay the same sales tax per packet of tax.
Sometimes, Governments give lump-sum payments to poor people affected by a natural calamity: the amount is fixed and same for each affected household ireespective of the number of persons in the household or the damages to property and the loss of income they suffered.
You can now identify more such examples of lump-sum payment. Your parents may have given you some lumpsum money at the beginning of going to college without calculating exactly how much you needed to spend on various heads. That’s lumpsum gift or subsidy if you would like to call it.
Answer:
It means you get all the money at one time. Like money in a retirement account, instead of taking periodic payments. Or paying an amount all at once, instead of installments.
Answer:
All at once.