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FINANCIAL DICTIONARY & GLOSSARY: COM - COR
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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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