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

Category: E

EXPENSES AND LOSSES

Comprise a company’s profit and loss statement. Both categories required entries by law. Must be reported on a regular, periodic basis.

EXPLANATION

Commentary that is made to clear up a subject to make linkages clear in a concept. Refer to definition and description.

EXTENDED DEATH BENEFIT

Group policy rule that pays life insurance benefits if the insured party is disabled from the time premiums are not paid until that person dies. It is also paid if the person

EXTENSION RISK

The loss of growing interest rates that slows the rate of principal payments on loans.

EXTRAPOLATION

Predicting an unknown from the known data. It uses history and the current population to predict growth. If the current situation is stable it is a good prediction method. Refer to interpolation.

ECONOMIC CAPITAL

CAPITAL resources that a company allocates internally to conduct its operations and support its RISKS (including FINANCIAL RISK and OPERATING RISK). Economic capital, which is a key measure of SOLVENCY, serves to

EFFICIENT MARKET HYPOTHESIS

A theory stating that financial markets reflect all publicly available information, suggesting that all investors have an equal opportunity to earn a given minimum return, and that it is not possible to

ELASTICITY OF SUPPLY

Producer response to price change for their goods or services. Typically, a prices increase means an increase in supply.

ELECTROMAGNETIC COMPATIBILITY (EMC)

Condition where electronic equipment and systems to operate without causing or suffering unacceptable degradation in output or performance when in close proximity to electro-mechanical devices, .

ELECTRONIC PROCUREMENT (E-PROCUREMENT)

Obtaining, or procuring, goods and services by internet or a company’s intranet as well as applying tighter fiscal controls over spending and product preferences. This process typically streamlines all aspects of the

ELEMENTAL

Something made up of a single element. Pure hydrogen is elemental hydrogen (H).

ELIGIBLE OFFER

Something made available when requirements are met. Example: offering a particular coverage to eligible people.

EMBEDDED SYSTEM

A fully functioning and complete computer system that is a sub-subsystem. Surface-mounted devices, such as a stepper motor or controller, are some examples.

EMMAGE

The number of ems as a measure of total area of type print.

EN SUITE

1. In General, an object that is a part of a set of objects. Also means being immediately adjoining or next to. 2. In the Hotel industry, it is French, meaning those

END OF THE PIPE

Managing the output from a process stream, not dealing with it in-stream. Physically, in metal work, an example is catalytic converters installed on engine exhaust pipe ends to reduce emissions. There is

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