Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: C

CAPITALIZATION RATE

For example, if a building is purchased for $1,000,000 sale price and it produces $100,000 in positive net operating income (the amount left over after fixed costs and variable costs are subtracted

CAPTIVE CUSTOMER

A customer who does not have realistic alternatives to buying power from the local utility, even if that customer had the legal right to buy from competitors.

CARBON RESERVOIR

An underground oil or gas trap formed in reefs, clastic limestones, chemical limestones, or dolomite.

CAREER LADDER

The process of using a previously earned post-secondary credential to enter another program at a higher level.

CARRIAGE OF GOODS BY SEA ACT

A United States statute governing the rights and responsibilities between shippers of cargo and ship-owners regarding ocean shipments to and from the United States. It is the U.S.

CARRYING COST

In marketing, carrying cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related

CASH AND CARRY

A system of wholesale trading whereby goods are paid for in full at the time of purchase and taken away by the purchaser.

CASH CONCENTRATION

The transfer of funds from diverse accounts into a central account to improve the efficiency of cash management.

CASH FLOW FORECAST

Cash flow forecasting is in a corporate finance sense, the modeling of a company or asset

CASH ORDER

When the required payment amount accompanies the order.

CASH VALUE LIFE INSURANCE POLICY

A life insurance policy that has cash value accumulation over the life of the policy. The premium is the same over the life of the policy. The premium is split between death

CATALOG AGGREGATOR

A company in Internet commerce that aggregates, collects, data on products from various sources to allow easy consumer comparison, source, and ordering of items exhibiting stable pricing and specification.

CBI REALIZED SALES

Established in 1983 by the Confederation of British Industry as a measure of early retail sales in the United Kingdom for the month. Based on Distributive Trades Surveys, given to retailers, the

CENTRALIZED MANAGEMENT

Management practice of accumulating all or most decision makers into one central office. These are the people who have the authority, control, and responsibility for the entire organization and are located at

CERTIFICATE OF COMPETENCY

When a designated authority confirms that the named contractor has fulfilled the requirements of receiving and performing a particular contract, that authority issues this document.

CHAIN STORE SALES

A report detailing the volume of sales from chain stores. This report is typically monthly. This report serves as an industry indicator of consumer spending, which translates into economic growth. Investors ultimately

CHANGE IN OCCUPANCY OR USE CLAUSE

A difference in how a premises used from the documented expectation. An example of this is changing use as a home to a business. It typically changes the potential risk to that

CHECK HOLD

A bank can legally hold funds from a deposited check for this stated number of days , before having to credit the check to the depositor’s account. This number of days is

CHEMICAL OXYGEN DEMAND (COD)

The process standardized for testing a sample of water by indirect measurement to determine the amount of pollution that cannot be oxidized biologically found in that water sample.

CHICAGO BOARD OPTIONS EXCHANGE (CBOE)

The futures and options exchange for the trading of contracts on securities, indexes, and financial products. The CBOE has a hybrid system to combine its open outcry auction with its electronic trading.

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