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GLOSSARY OF BUSINESS AND FINANCIAL TERMS

E

ECONOMIC RESOURCES - Scarce items which require effort to produce and for which a price must be paid to acquire them. 

EFFECTIVE GROSS INCOME - The estimated potential gross income from all sources after allowance to cover losses due to bad debt.

EFFICIENCY RATIO - The percentage of total building square footage in relation to its net leasable area, commonly associated with the leasing of commercial property.

ELECTRONIC DATA INTERCHANGE (EDI) - The process of sending information between computers so that certain transactions (such as ordering, invoicing and payments) can take place electronically. 

EMPLOYMENT CONTRACT - A contract established between a contractor and a business setting out the terms of employment.

ENCROACHMENT - The unauthorized intrusion onto the property of another.

ENTREPRENEUR - A person who organizes and manages a business. 

EQUATION - A statement of equality between two quantities. 

EQUITY - Permanent funds put into the business from yourself or from someone who invests in your business for a share of ownership. 

EQUITY CAPITAL - Money invested in the business by owners (personal resources). 

EQUITY CAPITALIZATION RATE - A capitalization rate expressing the relationship between cash flow and the equity invested in a business.


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