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conservative business definition
- Of or relating to accounting methods that lessen reported income by reducing revenue and increasing expenses. For example, a firm might recognize expenses that could be deferred to the following year.
- In managing, describing the choice to make safe decisions. For example, a firm chooses to finance expansion by issuing shares of stock rather than borrowing. Likewise, a firm's directors might be slow to expand capacity for fear demand for its product might slow.
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