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

Category: E

EXECUTIVE SUMMARY

Brief, comprehensive summarized business plan or proposal, often for an investment or commitment. Key points, as bullets, are extracted from an external audience presentation.

EXOGENOUS LIQUIDITY

LIQUIDITY and LIQUIDITY RISK that relate to an entire industry or national system, and are not confined to, or significantly influenced by, a single firm and its actions. See also ASSET LIQUIDITY

EXPECTATIONS HYPOTHESIS

Mathematical formula calculating potential future interest rates. If the following equation is true: (1 + RLt) squared = (1 + RSt) ( 1 + RS*t+1), given RS is the 1-year interest rate,

EXPENDITURE

Settling an obligation, using an invoice type of document as evidence, by paying cash or by cash-equivalent for goods or services, or a charge against available funds. Refer to revenue expenditure, capital

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.

EXPIRY

Ending term life insurance policy when the coverage period is over.

EXPORT IMPORT BANK (EXIM BANK)

An agenc that gives insurance against losses for nonpayment. It promotes foreign trade. They may also offer marine insurance, post shipment discounts, pre shipment advances, and locating new markets.

EXTENDED COVERAGE

The amount covered by the current insurance under normal circumstances. It is bought to help cover what is left and covers all possibe loss.

EXTENSION PRICING

Pricing using a standard price for a locatin that lets customers take on charges by raising the price.

EXTERNAL SOURCING

Buying goods from third parties at the lowest cost for operations. It considers the skills, capability, and financing.

EXTRANET

A network of computers that lets controlled acces to information to outsiders that are authorized to be connected to the intranet.

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.

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