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FINANCIAL DICTIONARY & GLOSSARY: COM
- a rival in business offering the same or similar goods or
component - any of the pieces or parts that make up a machine, product, etc.
conglomerate - a large corporation, or a group of companies, marketing a large number of different goods or services.
conservatism or prudence - an accounting principle which states that where alternative accounting methods are possible, one understates rather than overstates profits.
consistency principle - the same methods (of inventory valuation, depreciation, etc.) are used from one accounting period to the next.
consolidated statements - the combination of the financial statements of a parent company and its subsidiaries, as if they formed a single entity.
consumer or end-user - person who (buys and) uses goods or services; person whose needs are satisfied by producers.
consumer goods - goods that are bought and used by the public, rather than being used for manufacturing further goods.
consumer market - the individuals and households that buy products for their own personal consumption.
consumer price index - see retail price index.
consumption - the using, or using UP of goods.
consumption function - the relation between the level of consumption and the level of consumers' disposable income.
contingent liabilities - possible future liabilities that are mentioned in notes added to a balance sheet.
continuity principle or going-concern assumption - in accounting, assumes that a business will continue indefinitely into the future.
contract - a legal agreement, e.g. to buy, to sell, to provide insurance, etc.; or to shrink or get smaller.
contraction - act of getting smaller, like national income during a recession.
controlling interest - possession of more than 50% of a company's voting shares, allowing one to decide policy.
convertible bond - fixed interest company security which the holder may convert into the issuer's ordinary shares at a specified price.
convertible currency - one that can be freely exchanged for others.
corporation tax - the tax on company profits.
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FINANCIAL DICTIONARY & GLOSSARY
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