Small Business Encyclopedia
Letter: C
Cafeteria Plan
An employee benefit arrangement allowed by IRS Code Section 125, under which employees are allowed to pay for certain employee benefits on a pre-tax rather than an after-tax basis.
Capital Equipment
Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise. This equipment has an extended life so that it is properly regarded as a fixed asset.
Cash Float Accounts
A bank account specifically set up by a business owner to float money through from Business A to enhance the perceived value of Business B
Cash Flow
The difference between the available cash at the beginning of an accounting period and that at the end of the period. Cash comes in from sales, loan proceeds, investments and the sale of assets and goes out to pay for operating and direct expenses, principal debt service, and the purchase of asset
Cash Flow Statement
A financial statement that reflects the inflow of revenue vs. the outflow of expenses resulting from operating, investing and financing activities during a specific time period
Cash-Basis Accounting
An accounting system that doesn't record accruals but instead recognizes income (or revenue) only when payment is received and expenses only when payment is made. There's no match of revenue against expenses in a fixed accounting period, so comparisons of previous periods aren't possible.
CDC-504 Loan
An SBA loan program that provides long-term, fixed-rate loans of up to $1 million for financing fixed assets, such as land and buildings
Co-Op Advertising
Advertisements by retailers that include the specific mention of manufacturers, who---in turn---repay the retailers for all or part of the cost of the advertisement
Collateral
The asset(s) used as security in order to obtain a loan
Company Spokesperson
A person who represents a company, industry or cause in the media
Compensation
In financial terms, the salary and wages you pay to your employees for the work they do. Other, nonfinancial forms of compensation can also be offered to attract and retain staff.
Competition
Rivalry in business, as for customers or markets
Competitive Analysis
Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service
Competitive Intelligence
The process of gathering actionable information on your business's competitive environment
Competitive Matrix
A chart that compares your product or service to your competitor(s)
Compound Interest
Interest computed on the sum of the principle and the accrued interest
Consultants
A person engaged to provide professional advice or services for a fee, but not as an employee of the business that engages him or her
Contracts
A legal document between parties that clearly spells out just what is expected and required of each party
Copyright
Exclusive legal rights that protect works of authorship, composition or artistry. A copyright protects the publication, production or sale of the rights to a literary, dramatic, musical or artistic work or computer program or to the use of a commercial print or label.
Corporate Culture
A blend of the values, beliefs, taboos, symbols, rituals and myths all companies develop over time
Corporation
A form of business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors
Cost-Benefit Analysis
A process by which you weigh expected costs against expected benefits to determine the best (or most profitable) course of action
Credit Cards
A bank-issued card that allows people to purchase goods or services from a merchant on credit
Credit Policy
Guidelines that spell out how to decide which customers are sold on open account, the exact payment terms, the limits set on outstanding balances and how to deal with delinquent accounts
Credit, Extending
Offering your customers the option of paying for the products and services they purchase from you at a later date instead of upfront
Crime Prevention
Steps you can take to minimize the risk that your business may be the victim of either an internal or external crime
Cross Training
Teaching your employees the skills and responsibilities of another position at your company to increase their effectiveness
Customer Relationships
The ways in which your company communicates and deals with existing customers
Customer Service
The degree of assistance and courtesy granted those who patronize a business
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