Earnest Money - Money paid in good faith as a deposit, usually for a property, to show that the buyer is serious about doing business with the vendor.

Earn-Out - An arrangement in which an extra future conditional payment is made to the seller of a business in addition to the original price, based upon certain criteria being met.

Easterlin Paradox - A theory that beyond satisfaction of basic needs, increasing wealth of a country does not produce increasing happiness, suggested by US professor of economics Richard Easterlin based on his research published in 1974.

Easy Monetary Policy - A policy which enables the public to borrow money easily, at low interest rates, in order to expand the economy by investing the money in business activities.

E-Business - Electronic Business. Using the internet to conduct business or enable businesses to link together.

E-Commerce - Electronic Commerce. The buying and selling of products and services over the Internet.

Econometrics - Using mathematics and statistics to study the economy.

Economic Growth - An increase in a region's or nation's production of goods and services.

Economic Life - The period of time during which an asset, e.g. property, vehicle, machinery, etc., is expected to be usable, including repairs and maintenance, before a replacement is required.

Economic Union - Also known as a Common Market. An agreement between a group of countries which allows the free flow of goods, services, labour, etc., between the member countries and usually has a common currency.

Economies Of Scale - In manufacturing, the more units being made the cheaper each unit costs to produce.

Economy - The management of money, currency and trade of a nation. The efficient management of resources.

Ecotourism - Nature based travel to unspoilt places in the world with a view to conservation and to bring economic benefit to the local people. Also known as Ecological Tourism.

E-Currency - Electronic currency. Used on the Internet for making and receiving payments. Companies which provide this service include Paypal and E-Gold.

Edutainment - Products or media which both educate and entertain at the same time, such as TV, books, computer software.

E-Enabled - Being able to communicate and/or conduct business using the internet.

Egalitarian - Believing that everyone is equal and should all have the same rights and opportunities in life.

E-Lance - Freelance working using the Internet to sell services or goods anywhere in the world.

Elasticity Of Demand - The measure of whether people require more or less of a product or service after a price change.

Electronic Cottage - A home which has the necessary electronic equipment, such as telephone, computer, etc., from which to run a business.

Electronic Data Exchange - A means of exchanging documents between businesses using electronic equipment such as computers.

Electronic Purse - A type of microchipped smartcard which stores small amounts of money to enable payment for purchases, especially on the Internet, instead of having to use cash.

Embezzlement - Dishonestly appropriate goods or money from one's employer for personal gain; steal from one's employer, typically by electronic administrative methods, thus abusing a position of trust or responsibility.

Emolument - Total wages, benefits or compensation paid to someone for the job they do or the office they hold.

Emoticon - Used in e-mails, internet chat rooms and text messages, symbols which represent facial expressions, e.g. :-) = smile.

Emotional Capital - Emotional experiences, values and beliefs of a company's employees that make good working relationships and a successful business. Low emotional capital can result in conflict between employees, low morale and poor customer relations.

Emotional Intelligence - The ability or skill of a person to understand and control their emotions, and to understand and assess and respond appropriately to the feelings and situations of others. Commonly abbreviated to EQ (Emotional Quotient, alluding to the concept of IQ - Intelligence Quotient), Emotional Intelligence theory seeks to enable a sophisticated practical appreciation and application of the concept of intelligence, especially in work, management, leadership and human relationships.

Empirical - Information derived from experience, observation or experiment rather than from theory or subjective opinion. From Greek - empeiros, meaning skilled - in turn from peira, meaning trial or experiment.

Employee - An individual who is hired and paid by another person, company, organisation, etc., to perform a job or service.

Employee Buyout - A transaction in which employees purchase all or most of a company's shares, thereby gaining control of the company.

Employee Ownership - A business model and constitutional framework in which staff hold significant or majority shares of a company, thereby ensuring higher levels of loyalty and commitment, and fairness in the way that business performance relates to employee reward. The John Lewis Partnership is one of the prime and most successful examples of the concept.

Employee Self Service - An Internet based system which enables an employee to access their personal records and payroll details, so they can change their own bank account details, contact details, etc.

Employee Stock Option -  Allows specified employees the right to purchase shares in the company at a fixed price.

Employer - A person, business, organisation, etc., that pays for the services of workers.

Employment Equity - Promotes equal employment opportunities for everyone, regardless of gender, race, ability, etc.

Employment Law - Also known as Labour Law. The branch of the law that deals with the legal rights of employees, e.g. workplace safety, discrimination, compensation, etc.

Encrypt - Convert data into code which cannot be easily understood by people who have no authorisation to view it.

End Consumer - An individual who buys and/or uses a product or service.

End Marker - Used at the end of a take in a film, TV program or audition to cover a mistake or to remind people who the person auditioning was during auditions.

Enterprise - A company or business. A business project, often one which is sometimes difficult and/or risky.

Enterprise Application Integration - Software technology that links computer programs, data bases, etc., within an organisation, so that information can be shared.

Entrenpreneur - An ambitious person who starts new business ventures in order to make a lot of money, often taking financial risks.

Environmental Impact Assessment - The effect that a proposed project, such as a new building or development, will have on the environment.

Environmentalist - An individual who is concerned about the protection, conservation and improvement of the natural environment.

E-Procurement - Electronic procurement. Businesses using the internet to purchase from, or sell goods and services to, other businesses.

Equal Pay Act - In Britain, a government Act of 1970 which gives women the right to earn the same money and to receive the same benefits as men for performing the same job.

Equilibrium Price - The price at which the demand of a particular product or service is equal to the quantity supplied.

Equity Accounting - When a company records, in its financial records, profits which can be claimed from an affiliated company which they part own.

Escape Clause - A condition in a contract which allows the contract to be broken in particular circumstances.

E-Tailer - An retailer who uses the internet to sell goods and/or services to the public.

Ethernet - Technology, invented by The Xerox Corporation, which connects computers in a local area network (LAN).

Ethics Committee - In medicine, an independent body which is appointed to examine and consider the rights and safety of people taking part in clinical trials.

Ethnic Monitoring - Recording and evaluating the racial origins of employees in a company to ensure that all races are represented fairly.

Euroland - Also known as the Eurozone. All the countries in the EU (European Union) that use the Euro as currency.

European Union - EU. Previously called the European Community. An international, economical and political organisation which brought the nations of Europe together so that people, goods, money, services, etc., can move freely between member nations.

Exchange Rate - Also known as Foreign Exchange Rate. The rate, which can vary from day to day, at which a country's currency can be exchanged for another country's currency.

Exchange Rate Exposure - When a business risks losing money because of the need to change one currency for another of lower value.

Execution Risk - The risk that a company's plans, or a project, will fail because of changes being made, e.g. entering a new market, bad management, etc.

Executive Director - Also called Internal Director. A person who usually works as a full-time senior employee for a company, and is responsible for the day to day running of the business, and is often a member of the company's board of directors.

Ex Gratia - Something given or carried out as a favour or gift, rather than as a legal duty.

Exit Strategy - Also called Harvest Strategy. A plan by an investor to dispose of an investment, such as shares in a company, to make a profit, or a business owner to dispose of their company, e.g., by selling the business, floating it on the stock market, ceasing to trade, handing it over to another family member, etc.

Ex Officio - Someone who has a right to be included because of their job or position, e.g. to sit on a committee. (Latin - by virtue of office or position)

Experience Curve - In business, when costs fall and production increases as a result of increase in workers skills and lower material costs.

Expectancy Theory - A theory of motivation developed by Canadian Victor Vroom, Yale professor of management and psychology, established in his 1964 book, Work and Motivation, which essentially states that motivation necessarily comprises and is determined by three elements of belief:

1. Effort will produce success.
2. Success will produce reward.
3. These outcomes will be personally satisfying.

Expert System - A computer software system which can provide expert knowledge for a specific problem when users ask a series of questions.

Export Credit - A loan taken out by an importer with a bank in an exporters country, so that the importer can buy foreign goods and pay for them at a later date.

Export Factoring - A facility offered by banks to exporters. The bank is responsible for collecting payments for exported goods, so that the exporter can borrow money from the bank before the goods have been paid for by the customers.

Exposition - A public event at which businesses, that produce related goods, can showcase their products and/or services.

Ex Stock - Goods which are available for immediate delivery because the supplier has them in stock.

Extension Strategy - A marketing strategy to stop a product going into decline by making small changes to it, reaching new customers or finding new uses for it, e.g. a drink which was sold as an aid to those recovering from illness is now sold as a sports drink.

External Competitiveness - Being able to sell goods and services to customers in foreign countries at a competitive price.

External Debt - Also known as Foreign Debt. Money that is owed by the government, organisations or individuals to creditors in other countries.

External Equity - A situation in which an organisation's employees receive similar pay for the same type of work as employees in other organisations, i.e., pay which is equal to market rates.

Extranet - A private computer network to which a company's customers and suppliers can link and communicate using the Internet.

Extrapolation - The estimation or determination of what will happen in the future by extending (extrapolating) known information or data. The verb usage 'extrapolate' is common and means using mathematics or other logical process to extend a proven trend or set of data. 'What if?..' scenarios and business modelling generally involves some sort of extrapolation. It's a way of predicting something by assuming a historical pattern will continue into the future.

Ex Works - Goods which are delivered to the purchaser at the plant or place where they are manufactured. The purchaser then pays for transporting and insuring the goods from that point.

Eyeballs - Advertising term. A name given to the number of people who visit a website advertisement, which can be counted by the number of click-throughs.

E-Zine - An electronic magazine which is published on the internet, or delivered by e-mail.