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

EXTERNAL CLAIM

The way a creditor makes a claim on a business should the business not be able to pay. They are safe from claims if it happens by an outside partner. It is

EXTERNAL CONTROL

Measures that affect the company operations that are imposed by the government or another organization. It is a rule that affects the company and involves taxes as well.

EXTERNAL DEBT

The money borrowed by a foreign country. It must be paid in the currency the loan was made in. An export must happen sometimes to get that currency.

EXTERNAL DEPENDENCE

Relying on an outside party that limits freedom of choice in the operation and strategy.

EXTERNAL ENVIRONMENT

Parties and factors that surround an organization but influence it and the risks. AKA operating environment.

EXTERNAL EQUITY

The way an employee percieves their condtions and the rewards of working at the firm compared to other firms.

EXTERNAL FAILURE COSTS

The cost that is incurred due to defects. The product may be shipped wrong or not be of the quality needed.

EXTERNAL FINANCING

Money from outside investors and lenders not from the firm’s internal reserves.

EXTERNAL INCOME

1. income from activities that occur outside the company. 2. refer to remittance.

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.

EXTERNAL SOURCING

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

EXTERNAL STATEMENT

A financial statement that tells outside parties the firm’s position and their results. They give detailed information to help with decision making and management.

EXTERNAL STRUCTURE

How a firm relates shown in a web drawing. It involves competitors, customers, and suppliers to name a few.

EXTERNAL VALIDITY

Whena generalization is amde from other studies that only have a part of the relevant population.

EXTERNAL VERIFICATION

Confirming business transactions and documents by a third party that is usually an auditor.

EXTERNALITIES

A factor those benefits and costs are not recorded on the market prices.

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.