Business Dictionary

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An alphabetical listing of General terms and items.

Capital   Dico Tools
Money available to invest or the total of accumulated assets available for production.

Capital Account   Dico Tools
The sum of a company's capital at a particular time

Capital Allowance   Dico Tools
The tax advantage that a company is granted for money that it spends on fixed assets.

Capital Appreciation   Dico Tools
The increase in a company's or individual's wealth.

Capital Asset   Dico Tools
An asset that is difficult to sell quickly. for example, real estate.

Capital Budget   Dico Tools
A budget for the use of a company's money.

Capital Controls   Dico Tools
Regulations placed by a government on the amount of capital residents may hold.

Capital Equipment   Dico Tools
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.

Capital Gains (and Losses)   Dico Tools
The financial gain made upon the disposal of an asset. The gain is the difference between the cost of its acquisition and net proceeds upon its sale.

Capital Goods   Dico Tools
Stocks of physical or financial assets that are capable of generating income.

Capital Inflow   Dico Tools
The amount of capital that flows into an economy from services rendered abroad.

Capitalism   Dico Tools
An economic and social system in which individuals can maximize profits because they own the means of production.

Capitalist   Dico Tools
An investor of capital in a business.

Capitalization   Dico Tools
The amount of money invested in a company or the worth of the bonds and stocks of a company.

Carbon Dioxide   Dico Tools
Carbon dioxide is a molecule consisting of one carbon atom and two oxygen atoms. This molecule is a common by-product of animal and plant respiratory functions and is found naturally in the Earth's atmosphere as a gas. Carbon Dioxide is also required by plants for photosynthesis in which the molecule is used in combination with water to create cellulose and sugars.

Cash   Dico Tools
Money in hand or readily available.

Cash Based Accounting   Dico Tools
An accounting method that enters income and expenses into the books at the time when payment is received or expenses incurred.

Cash Discount   Dico Tools
A deduction that is given for prompt payment of a bill.

Cash Flow   Dico Tools
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.

Cash Receipts   Dico Tools
The money received by a business from customers.

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Centralization   Dico Tools
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.

Certificate   Dico Tools
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.

Certified Public Accountant   Dico Tools
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.

Chamber Of Commerce   Dico Tools
An organization of business people designed to advance the interests of its members. There are three levels

Chief Executive   Dico Tools
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.

Chief Executive Officer   Dico Tools
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 Financial Officer   Dico Tools
The officer of the organization responsible for handling finds, signing checks, the keeping of financial records, and financial planning of the company.

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

Clicks And Brick   Dico Tools
A business strategy that involves combining the traditional retail outlets with online commerce.

Close Corporation   Dico Tools
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.

Close-end Credit   Dico Tools
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.

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

Collateral   Dico Tools
Property or goods used as security against a loan and forfeited to the lender if the borrower defaults.

Commercial Paper   Dico Tools
Uncollateralized loans obtained by companies, usually on a short-term basis.

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

Contract   Dico Tools
An agreement regarding mutual responsibilities between two or more parties.

Controllable Expenses   Dico Tools
Those expenses that can be controlled or restrained by the business person.

Convenience Goods   Dico Tools
Goods often used by the consumer, but the consumer is unwilling to spend "shopping time" to acquire them. This covers a broad spectrum of products including candy, cigarettes, drugs, newspapers, magazines and most grocery products.

Corporate Image Advertising   Dico Tools
A "corporate image" ad is designed to primarily promote the enterprise and secondarily promote the products or services of the enterprise.

Corporation   Dico Tools
A voluntary organization of persons, either actual indi viduals or legal entities, legally bound together to form a business enter prise; an artificial legal entity created by government grant and treated by law as an individual entity.

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Cost Of Goods   Dico Tools
The direct costs involved in producing a product or service which usually includes labor and materials.

Cost Of Goods Sold   Dico Tools
The direct cost to the business owner of those items which will be sold to customers.

Cost Of Sales   Dico Tools
The cost of goods plus the expenses involved in selling and delivering the product or service.

Credit   Dico Tools
Another word for debt. Credit is given to customers when they are allowed to make a purchase with the promise to pay later. A bank gives credit when it lends money.

Credit Analyst   Dico Tools
Credit Analyst: A financial professional who has expertise in evaluating the creditworthiness of individuals and businesses. Credit analysts determine the likelihood of a borrower being able to meet financial obligations and pay back a loan, often by reviewing the borrower's financial history and determining whether market conditions will be conducive to repayment. 

Credit Line   Dico Tools
The maximum amount of credit or money a financial insti tution or trade firm will extend to a customer.

Currency Futures   Dico Tools
Currency Futures: A transferable futures contract that specifies the price at which a specified currency can be bought or sold at a future date. 

Current Assets   Dico Tools
Valuable resources or property owned by a company that will be turned into cash within one year or used up in the operations of the company within one year. Generally includes cash, accounts receivable, inventory and prepaid expenses.

Current Liabilities   Dico Tools
Amounts owned that will ordinarily be paid by a company within one year. Generally includes accounts payable, current portion of long-term debt, interest and dividends payable.

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