Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: E

ENGEL’S LAW

A law of Economic theory. Income spent on food, as a percentage of overall income, decreases as income increases, other factors remaining constant. This law suggests that the percentage of income spent

ENTERPRISE ARCHITECTURE

Strategic design or ‘blueprint’ of corporate business, not the computerization. This blueprint is a business flow diagram of the business components employed in specific functional operations, the interrelationships of those components, and

ENTIRE CONTRACT CLAUSE

A contract clause overtly stating that the contract contains all aspects of agreement between an insurer and the insured. The application, endorsements, and conditions, as well as a list of specific points

ENTRY SUMMARY

Documents needed by importers certifying the products are legal imports. The importer calculates and states value, classifies goods, and determines proper duties, fees and taxes. Must be submitted to US Customs, who

EPISTEMOLOGY

The study of the limits of human understanding, the study of knowledge, its basis, nature, and origins. Seeks to answer how knowledge is gained, what it is, and how to measure and

EQUIPMENT FLOATER

Specific coverage on specific types of equipment for specific types of damage.

EQUITY HOLDER

The entity owner of shares or stock. More commonly known as a shareholder or stockholder.

EQUITY RATIO

A calculate value by the following formula: value of owner’s equity divided by the value of all the assets involved. No debt financing is involved in the calculation. Identifies how much has

ERGONOMICS

Study of the human in the workplace. Focus is on the mental and physical stresses, necessary abilities and constraints, various workplace settings. Anatomical, physiological, and psychological activity or human factors are applied

ESPOUSED VALUES

Values and morals essential to the development and improvement of standards on how business is done in a company.

ESTIMATING SYSTEM

Characteristics and information used in projecting values, typically cost estimates. Information used is policies, procedures, practices, and available, reliable historical data.

EURO COMMERCIAL PAPER (ECP)

Short term, unsecured discount DEBT securities with maturities ranging from 1 to 360 days issued by companies in the EUROMARKETS. A SYNDICATE of DEALERS places ECP on a BEST EFFORTS basis; unlike

EUROPEAN CENTRAL BANK (ECB)

The central bank of the European Union (EU) area. Responsible for planning and rolling out the EU money-management polices. Organized January 1, 1999. This bank is independent from all EU countries and

EVALUATION PERIOD

Pre-determine duration for the collection of information to be used in a pre-determined analysis. An example is a quarterly money manager performance evaluation.

EX COUPON

No interest payment rights on the next payment date given on the purchase of a bond or preferred stock.

EXCESS CAPACITY

Having more capability to produce than is needed. Wonderful in war, but costly in manufacturing. Producing more can be a solution for reducing average costs.

EXCESS VALUE

Value declared for a shipment greater the carrier liability limit.

EXCLUSION

1. Something not covered, as in specific damage not covered in an auto policy. S 2. Something not included in an investigation or a tax. An example is an asset or income

EXCLUSIVE RIGHT TO SELL LISTING

Formally agreed-to restriction allowing a real estate agent to be the sole seller of a property, typically for a 3-month period. The property owner can find anyone, but must bring that prospective

EXECUTION RISK

The RISK of lowering ENTERPRISE VALUE by not being able to successfully gain entry into a new market, introduce a new product or service, or absorb a new acquisition.

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