What Is a Consolidated Tax Return? A consolidated tax return is a corporate income tax return of an affiliated group of corporations, who elect to report their combined tax liability on a single return. The purpose of the tax return allows for corporations that run their business through many legal affiliates to be viewed as
What Is the Consolidation Phase? The consolidation phase is a stage in the industry life cycle where competitors in the industry start to merge with one another. Companies will seek to consolidate in order to gain a larger portion of overall market share and to take advantage of synergies. Each of these items can increase
What Is a Consortium? A consortium is a group made up of two or more individuals, companies, or governments that work together to achieving a common objective. Entities that participate in a consortium pool resources but are otherwise only responsible for the obligations that are set out in the consortium’s agreement. Every entity that is
What Is a Consortium Bank? A consortium bank is a subsidiary bank, which numerous other banks create. These banks might create a consortium bank to fund a large-scale project that is too large for one bank to complete itself, such as providing affordable homeownership for low- and moderate-income home buyers or to execute a large
What Is Conspicuous Consumption? Conspicuous consumption is the purchase of goods or services for the specific purpose of displaying one’s wealth. Conspicuous consumption is a means to show one’s social status, especially when publicly displayed goods and services are too expensive for other members of a person’s class. This type of consumption is typically associated
What are Constant Currencies? Constant currencies are exchange rates used to eliminate the effect of fluctuations when calculating financial performance numbers for publication in financial statements. Companies with overseas operations often supplement mandatory, reported figures with optional, constant currency numbers. Basically, it enables them to show investors how they performed, independently of foreign currency movements. How Constant
What Is the Constant Default Rate (CDR)? The constant default rate (CDR) is the percentage of mortgages within a pool of loans in which the mortgagors (borrowers) have fallen more than 90 days behind in making payments to their lenders. These pools of individual outstanding mortgages are created by financial institutions that combine various loans
What is a Constant Dollar? A constant dollar is an adjusted value of currency used to compare dollar values from one period to another. Due to inflation, the purchasing power of the dollar changes over time, so in order to compare dollar values from one year to another, they need to be converted from nominal
What Is Constant Maturity? Constant maturity is an adjustment for equivalent maturity, used by the Federal Reserve Board to compute an index based on the average yield of various Treasury securities maturing at different periods. Constant maturity yields are used as a reference for pricing various kinds of debt or fixed-income securities. The most common
What Is a Construction Bond? A construction bond is a type of surety bond used by investors in construction projects. Construction bonds are a type of surety bond that protects against disruptions or financial loss due to a contractor’s failure to complete a project or failure to meet contract specifications. These bonds ensure a construction
