What Is a Comfort Letter? A comfort letter is a business document that is intended to assure the recipient that a financial or contractual obligation with another party can and will be met. The sender is often an independent auditor or accountant. The comfort letter does not make a legally enforceable commitment but conveys the
What Is a Command Economy? A command economy is a key aspect of a political system in which a central governmental authority dictates the levels of production that are permissible and the prices that may be charged for goods and services. Most industries are publicly owned. The main alternative to a command economy is a
What Is Commerce? Commerce is the exchange of goods or services among two or more parties. It is the subset of business that focuses on the sale of finished or unfinished products rather than their sourcing, manufacturing, transportation, or marketing. Generally, commerce can refer to an exchange of goods or services for money or something
What Is a Commercial Account? A commercial account is any type of bank account that is used by corporations and businesses. A commercial account is usually a checking or other type of demand deposit account, meaning the money can be withdrawn at any time. Regulation Q of the U.S. Federal Reserve prohibits banks from paying
What Is a Commercial Blanket Bond? The term commercial blanket bond refers to a form of business insurance for employers who want to protect themselves against theft, fraud, embezzlement, forgery, or related mischief caused by dishonest employees. This particular type of liability coverage typically applies evenly to a company’s employees and generally does not apply to a company’s customers. Key
What Is Commercial Credit? Commercial credit is a pre-approved amount of money issued by a bank to a company that can be accessed by the borrowing company at any time to help meet various financial obligations. Commercial credit is commonly used to fund common day-to-day operations and is often paid back once funds become available.
What Is Commercial General Liability (CGL)? Commercial general liability (CGL) is a type of insurance policy that provides coverage to a business for bodily injury, personal injury, and property damage caused by the business’s operations, products, or injuries that occur on the business’s premises. Commercial general liability is considered comprehensive business insurance, though it does
What Is Commercial Health Insurance? Commercial health insurance is health insurance provided and administered by nongovernmental entities. It can cover medical expenses and disability income for the insured. As of 2020, 1,096 health insurers filed statements with the National Association of Insurance Commissioners (NAIC), a nonprofit that sets standards for the U.S. insurance industry and
What Is Commercialization? Commercialization is the process of bringing new products or services to market. The broader act of commercialization entails production, distribution, marketing, sales, customer support, and other key functions critical to achieving the commercial success of the new product or service. Typically, commercialization occurs after a small business has grown and scaled its
What Is a Commercial Loan? A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank. It is typically used to fund major capital expenditures and/or cover operational costs that the company may otherwise be unable to afford. Expensive upfront costs and regulatory hurdles often prevent small
