Business Glossary - E


Eap Counselor - Conducts confidential consultations with troubled employees who so request or who are referred for objective analysis of a personal problem and for identification of the best available assistance and/or professional services needed to resolve the employee

Earning Power - The demonstrated ability of a business to earn a profit, over time, while following good accounting practices. When a business shows a reasonable profit on invested capital after fully maintaining the business property, appropriately compensating its owne

Easement - A right or privilege that a person may have on another’s land, as the right of a way or ingress or egress.

Electronic Data Interchange - Transmission of information between computers using highly standardized electronic versions of common business documents.

Emerging Small Business - A small business concern whose size is no greater than 50 percent of the numerical size standard applicable to the Standard Industrial Classification code assigned to a contracting opportunity.

Employee Assistance Program (Eap) Coordinator - Coordinates the activities of Central Office or regional counselors, maintains a community resource list, of available professional assistance to troubled employees and a current roster of EAP counselors for the area of his/her jurisdiction.

Employer Identification Number (EIN) - used to identify the tax accounts of employers, sole proprietors, corporations, partnerships, and other entities.

Employment Taxes - federal income tax withholding, social security and Medicare taxes, and federal unemployment tax.

Enterprise - Aggregation of all establishments owned by a parent company. An enterprise can consist of a single, independent establishment or it can include subsidiaries or other branch establishments under the same ownership and control.

Entrepreneur - One who assumes the financial risk of the initiation, operation and management of a given business or undertaking.

Equity - An accounting term used to describe the net investment of owners or stockholders in a business. Under the accounting equation, equity also represents the result of assets less liabilities.

Equity Financing - The provision of funds for capital or operating expenses in exchange for capital stock, stock purchase warrants and options in the business financed, without any guaranteed return, but with the opportunity to share in the company’s profits. Equity financi

Equity Partnership - A limited partnership arrangement for providing start-up and seed capital to businesses.

Escrow Accounts - Funds placed in trust with a third party, by a borrower for a specific purpose and to be delivered to the borrower only upon the fulfillment of certain conditions.

Establishment - A single-location business unit, which may be independent – called a single- establishment enterprise– or owned by a parent enterprise.

Estimated Tax - regular, estimated payments on income during the year.

Expenses - costs incurred (other than purchases) to carry on a business.