Contract

Definition 1:
An agreement regarding mutual responsibilities between two or more parties.

Definition 2:
A mutually binding legal relationship obligating the seller to furnish supplies or services (including construction) and the buyer to pay for them.

Commission

A percentage of the principal or of the income that an agent receives as compensation for services.

Commercial paper

uncollateralized loans obtained by companies, usually on a short-term basis.

Co-signers

Joint signers of a loan agreement who pledge to meet the obligations of a business in case of default.

Collateral

property or goods used as security against a loan and forfeited to the lender if the borrower defaults

Close-end credit

a loan, plus any interest and finance charges, that is to be repaid in full by a specified future date. Loans that have real estate or motor vehicles as collateral are usually closed-end.

Close corporation

a public corporation in which all of the voting stock is held by a few shareholders, for example, management or family members. Although it is a public company, shares would not normally be available for trading because of a lack of liquidity.

Choice

A decision to purchase that is based on an evaluation of alternatives.

Chief financial officer

the officer of the organization responsible for handling finds, signing checks, the keeping of financial records, and financial planning of the company.

Chief Executive Officer

the highest ranking executive officer within a company or corporation, who has responsibility for over-all management of its day-to-day affairs under the supervision of the board of directors. Abbr. CEO

Chief Executive

the person with overall responsibility for ensuring that the daily operations of an organization run efficiently and for carrying out strategic plans. The chief executive of an organization normally sits on the board of directors. In a limited company, the chief executive is usually known as a managing director.

Chamber of Commerce

An organization of business people designed to advance the interests of its members. There are three levels: national, state and local.

Certified Public Accountant

An accountant to whom a state has given a certificate showing that he has met prescribed requirements designed to insure competence on the part of the public practitioner in accounting and that he is permitted to use the designation Certified Public Accountant, commonly abbreviated as CPA.

Clicks and brick

a business strategy that involves combining the traditional retail outlets with online commerce.

Certificate

A document representing partial ownership of a company that states the number of shares that the document is worth and the names of the company and the owner of the shares

Centralization

the gathering together, at a corporate headquarters, of specialist functions such as finance, personnel and information technology. Centralization is usually undertaken in order to effect economies of scale and to standardize operating procedures throughout the organization. Centralized management can become cumbersome and inefficient and may produce communication problems. Some organizations have shifted toward decentralization to try to avoid this.

Cash receipts

The money received by a business from customers.

Cash flow

Definition 1:
The actual movement of cash within a business; the analysis of how much cash is needed and when that money is required by a busi¬ness within a period of time.

Definition 2:
An accounting presentation showing how much of the cash generated by the business remains after both expenses (including interest) and principal repayment on financing are paid. A projected cash flow statement indicates whether the business will have cash

Cash discount

A deduction that is given for prompt payment of a bill.

Cash

Money in hand or readily available.

Capitalization

the amount of money invested in a company or the worth of the bonds and stocks of a company.

Capitalist

an investor of capital in a business.

Capital inflow

the amount of capital that flows into an economy from services rendered abroad.

Capital goods

stocks of physical or financial assets that are capable of generating income.

Capital equipment

Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise. Such equipment will not be sold in the normal course of business, but will be used and worn out or consumed in the course of business.

Business venture

Taking financial risks in a commercial enterprise.

Capitalism

an economic and social system in which individuals can maximize profits because they own the means of production.

Budget

An estimate of the income and expenditures for a future period of time, usually one year.

Break-even

The point of business activity when total revenue equals total expenses. Above the break-even point, the business is making a profit. Below the break-even point, the business is incurring a loss.

Brand name

A term, symbol, design or combination thereof that iden¬tifies and differentiates a seller's products or service.

Brand

A design, mark, symbol or other device that distinguishes one line or type of goods from those of a competitor

Bottom line

The figure that reflects company profitability on the income statement. The bottom line is the profit after all expenses and taxes have been paid.

Board of Trustees

A committee or governing body that takes responsibility for managing, and holds in trust, funds, assets, or property belonging to others, for example, charitable or pension funds or assets.