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

Category: E

EXCELLENT

Not perfect, yet achieving the highest levels of performance or expectations. Better than outstanding or superior.

EXCESS PLAN

A plan that includes social security in its retirement funding.

EXCHANGEABLE SECURITY

Marketable, tradable vehicles, like bonds or shares one can swap, rather than sell and buy, for another common stock.

EXCLUSIVE ECONOMIC ZONE

Area up to 200 miles (321.87 Km) offshore is the exclusive area of resource management by the government and country owning that coast. Free navigation is allowed by all countries beyond 12

EXECUTED CONSIDERATION

The payoff, regardless of how or what, on a completed promise. Refer to executory consideration.

EXECUTIVE SUCCESSION PLAN

Business continuity plan section for smooth, pre-planned, transferal of authority under any condition. It identifies who succeeds the current position holder and is done for every position deemed critical for recovery from

EXOGENOUS

External factors in a model, organism, organization, or system cause this type of condition. Contrast to endogenous.

EXPECTATION OF LIFE

Experience-based mortality-table-calculation of an average person’s number of remaining years of life, as of a certain age.

EXPENDABLE ITEM

Unrepairable, consumed-when-used component or part, like a bolt, nut, or rivet (1) needing no authorized repair procedure; (2) having excessive repair cost exceeding replacement cost; (3) listed as un-returnable inventory at issue.

EXPENSE STOP

Upper limit of what a landlord or tenant will pay. The provision obligates the renter to pay a maximum of certain fees. Beyond that maximum, the landlord owes the rest. Represents an

EXPIRED COST

An expense for revenue in a period of time when benefits are also received. If a business gets all benefits from a cost it is an expired cost.

EXPORT DECLARATION

A form for customs the exporter done at the port to describe the exports and be a control document. An export license or certificate of origin is needed as well.

EXTENSION OF BENEFITS

A rule that lets employees not working extend their coverage after the policy ends. It lasts until they come back to work or are discharged from a hospital.

EXTERNAL REPORT

A report that has the company information in it. It is meant for the public to get the data needed to make decisions.

EXTRADITION TREATY

A treaty between states regarding the return of criminals who flee. The courts have to be sure that prima facie case exists.

EARNINGS PER SHARE (EPS)

The amount of net income earned by a company, after PREFERRED STOCK DIVIDENDS have been distributed, which is attributable to each outstanding share of COMMON STOCK. The EPS measure is used as

EFFICIENT MARKET

Market where immediate response to information occurs, typically in terms of price increase and decrease, as in a stock market. Based on an alleged sense of fair play where all pertinent information

ELASTICITY OF SUBSTITUTION

How buyers of a good or service to a substitute’s price changes. To what degree can two similar goods or services substitute for each other, based on price changes. Measured as a

ELECTRICITY SWAP

An OVERTHECOUNTER SWAP involving the exchange of fixed and floating electricity prices based on the average level of a recognized electricity pool or pricing index; transactions are often settled monthly or quarterly

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