E
Earnings: A sum of money gained from employment, usually quoted before tax, including extra reward such as fringe benefits, allowances, or incentives. In business, income or profit from a business, quoted gross or net of tax, which may be retained and distributed in part to the shareholders.
e-business: The conduct of business on the Internet, including the electronic purchasing and selling of goods and services, servicing customers, and communications with business partners.
e-commerce: The exchange of goods, information products, or services via an electronic medium such as the Internet.
Economic growth: When a country’s gross domestic product (GDP) – more goods and services are produced than in the previous year.
Economic problem: The fact that there are unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity.
Economies of scale: The factors that lead to a reduction in average costs as a business increases in size.
Employer’s association: A group of employers join together to give benefits to their members. Also called employer federations and trade association.
Enterprise: A venture characterized by innovation, creativity, dynamism, and risk. An enterprise can consist of one project, or may refer to an entire organization.
Entrepreneur: An innovator of business enterprise who recognizes opportunities to introduce a new product, a new process or an improved organization, and who raises the necessary money, assembles the factors for production and organizes an operation to exploit the opportunity.
Equal opportunities: The granting of equal rights. privileges, and status regardless of gender, age, race, religion, disability, or sexual orientation. Equality in employment is regulated by law in most Western countries.
Equipment: Physical property of a more or less permanent nature ordinarily useful in carrying on operations, other than land, buildings or improvements to either of them. Examples are machinery, tools, tracks, cars, ships, furniture and furnishings.
Equity: A financial investment in a business. An equity investment carries with it a share of ownership of the business, a stake in the profits and a say in how it is managed. Equity is calculated by subtracting the liabilities of the business from the assets of the business.
Equity capital: Money furnished by owners of the business.
Ergonomics: The study of workplace design and the physical and psychological impact it has on workers. Ergonomics is about the fit between people, their work activities, equipment, work systems, and environment to ensure that workplaces are safe, comfortable, efficient, and that productivity is not compromised.
Ethical decision: A decision taken by a manager or company because of the moral code observed in that firm.
Euro: The currency of 12 member nations of the European Union. The Euro was introduced in 1999, when the first 11 countries to adopt it joined together in an Economic and Monetary Union and fixed their currencies' exchange rate to the Euro. Notes and coins were brought into general circulation in January 2002, although banks and other financial institutions had before that time carried out transactions in Euros.
Exchange: The process by which two or more parties give something of value to one another to satisfy needs and wants.
Exchange controls: The regulations by which a country's banking system controls its residents' or resident companies' dealings in foreign currencies and gold.
Exchange rate appreciation: When the value of a country’s currency rises compared with other currencies.
Exchange rate depreciation: When the value of a country’s currency falls compared with other currencies.
Exchange rate: The rate at which one country's currency can be exchanged for that of another.
Excise duty: A tax on goods such as alcohol or tobacco produced and sold within a particular country.
Expense account: amount of money that an employee or group of employees can draw on to reclaim personal expenses incurred in carrying out activities for an organization.
Expenses: personal costs incurred by an employee in carrying out activities for an organization that are reimbursed by the employer.
Export agent: an intermediary who acts on behalf of a company to open up or develop a market in a foreign country. Export agents are often paid a commission on all sales and may have exclusive rights in a particular geographic area.
Exporting: the process of selling goods to other countries.
External growth: Occurs when a business takes over or merges with another business. Often called integration as one firm is integrated into another one.
External recruitment: The vacancy is filled by someone who is not an existing employee and will be new to the business.
External sources: Sources of information outside the company used to compile market research as a basis for marketing decisions.