Glossary - Definition of Business & Commercial Terms
Glossario - Definizione dei Termini Societari & Commerciali
- C -
Call
When shares are issued, the members may be allowed
to pay for them by installments. Each installment is a call.
Cash Flow
The movement of cash in and out of a business.
Cash is usually required to pay a company´s bills and commitments.
A
company with negative cash flow has less cash coming in as receipts
than going out in payments.
Negative cash flow can bankrupt a
business that may actually be running profitably.
EU & UK Data
Ltd calculates Cash Flow as the Pre-tax Profit of the company plus
Depreciation charged against that Profit.
Certified Accountant
A member of the Association of
Certified Accountants.
Certified accountants are authorised to audit
the books of limited companies.
Members use the initials ACCA or
FCCA.
Certificate of Incorporation
The company´s ´birth
certificate´ as issued by Companies House on the day of
incorporation.
Chairman
The Director who presides over members´
meetings and board meetings.
Charge
A loan taken out by the company, usually against
some form of security. When a company borrows money the lender may
require security for the debt.
This is usually in the form of a legal
document entitling the lender to take possession of certain of the
company´s assets if the debt is not repaid.
This security is called
a charge.
Thus, there might be a charge over the freehold property to
secure a bank loan.
Chartered Accountant
A member of one of the Institutes of
Chartered Accountants.
Chartered accountants are authorised to audit
books of limited companies.
Members use the initials ACA, FCA, CA.
Chartered Secretary
A member of the Institute of Chartered
Secretaries and Administrators - members´ initials are either ACIS
or FCIS.
Close Company
Companies under the control of five or
fewer persons.
Collection Period
How long, on average, a company takes
to pay its´ debts.
Companies Act 2006
Formerly the Company Law Reform Bill,
the Companies Act 2006 will effectively replace existing companies
legislation with the exception of provisions relating to company
investigations and community interest companies.
For more information
please see ourCompanies Act 2006 help section.
Companies House
Where the Registrar of Companies works
and where all company forms, returns and accounts are filed.
Companies House is an executive agency of the Department of Trade and
Industry, and has five main functions:
- the registration of new companies;
- the registration
of documents required to be delivered under companies;
- insolvency and related legislation;
- the provision of
company information to the public;
- dissolution and
striking off companies from the register;
- ensuring that
companies comply with their obligations in connection with the above
functions.
Company Agent
A Director is a company agent acting on its
instructions.
Company Name
As registered at Companies House. Only one
company can hold this name at any one time.
A company can change it´s
name at any time, unlike it´s number which is permanent.
Company Seal
A company may execute deeds by affixing its
seal to them.
There is no longer any requirement for a company to
have a seal and it may execute deeds by either two directors or a
Director and the company secretary signing the relevant document.
Confirmation Statement
A prescribed form which must be filed
annually with Companies House by a limited company.
Summarises
current directorships, shareholders, company´s activities and
company/capital structure.
Confirmation Statement Date or CSD
The Confirmation Statement should be
filed within 14 days of this date each year.
Convertible Shares or Stock
If the Articles allow, a
company may, by resolution, convert one class of one type of its
shares into another class or into stock or vice versa.
Corporation
A company is a corporation or legal ´person´.
Cost of Sales
Cost components directly related to
turnover.
County Court Judgement
A CCJ is an order from a County
Court that the company must pay an outstanding debt. Generally
related to non payment of a loan, mortgage etc debt in general. If
the debt is paid off, the CCJ will be satisfied and recorded.
When
settling debts companies often overlook notifying the court so a
judgement may appear unsettled when the debt has actually been paid.
More information please see our help pages on County Court
judgments.
Creditor
An individual or organisation to which the
company owes money - most commonly a supplier.
Credit Limit
An absolute measure of a company´s ability to settle potential credit transactions.
EU & UK Data Ltd currently gauges the ability by use of three values:
- Cash Flow
- Working Capital and
- Net Worth.
The average of these 3 components is then taken as a guide for the credit capacity of the company.
The final figure calculated will depend on the previously derived Credit Score.
The % applied is directly proportional to credit score, the greater the score the higher the %.Current Ratio
The Current Assets divided by Current
Liabilities.
If greater than 1 then assets are greater than
liabilities, less than 1 then liabilities are greater than assets.
A
very useful indicator, especially of cash flow.
See also Liquidity
Ratio.
AVVERTENZE D'UTILIZZO:
Il presente glossario contiene una definizione dei termini più
frequentemente utilizzati nell'attività d'impresa nel Regno Unito.
La spiegazione di ciascuno dei termini indicati in questo glossario è di carattere meramente orientativo e priva di valore legale; si raccomanda, quindi, di tenere conto del contesto e dell'evento in cui essi vanno applicati, in quanto il significato loro attribuito potrebbe differire rispetto a quello qui rappresentato.
AVVERTENZE LEGALI - Il contenuto del sito web "www.dottoricommercialistilondra.com"
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