GLOSSARY OF HUMAN RESOURCES TERMS

E-learning The delivery of formal and informal training and educational materials, processes and programs via the use of electronic media. Early retirement plan A benefit plan offered by an organization providing incentives geared toward encouraging employees who are approaching retirement age to voluntarily retire prior to their normal retirement age. Early return to work program Modified work programs designed to get employees who have been out of work due to injury or illness to return to the workforce sooner by providing them with less strenuous alternative jobs until they are able to resume their full regular duties. EEO-1 category One of nine broad job categories used on the EEO-1 Report. They are officials & managers, professionals, technicians, sales workers, office & clerical, craft workers, operatives, laborers and service workers. EEOC guidelines Interpretations of Title VII expressed by the EEOC that don't have the force of law, but tend to be supported by the courts. These positions are outlined in various EEOC publications ("Discrimination Because of Religion," etc.) Eighty-percent rule Method of determining adverse impact. Selection rates for any group that are less than 80 percent (fourfifths) of the rate for other groups is evidence of a violation of this rule. Electromation Used to refer to a NLRB ruling declaring that, in nonunion companies, labor management cooperation (i.e., quality circles, employee involvement programs, etc.) is illegal because the committees through which such cooperation takes place are equal to a labor organization, as defined by the NLRA. Electronic monitoring An employee surveillance practice where items such as telephone calls or e-mail/Internet usage are observed for general business, training or performance-related reasons. Emergency planning The process of establishing specific measures or actions to be taken when responding to catastrophic events or tragedies (i.e., fire, earthquake, severe storms, workplace violence, kidnapping, bomb threats, acts of terrorism or other emergency situations) in the workplace. Emotional intelligence Describes the mental ability an individual possesses enabling him or her to be sensitive and understanding to the emotions of others, as well as to manage his or her own emotions and impulses. Employee assistance program (EAP)

A work-based intervention program designed to identify and assist employees in resolving personal problems (i.e., marital, financial or emotional problems, family issues, substance/alcohol abuse) that may be adversely affecting the employees performance. Employee-driven idea system A type of suggestion program where employees are rewarded for being ultimately responsible for the management and implementation of any idea they submitted. Employee engagement The means of creating a work environment that empowers employees to make decisions that affect their jobs. Also referred to as employee involvement. Further defined by the Corporate Leadership Councilin the in their 2004 study, Driving Performance and Retention Through Employee Engagement as the extent to which employees commit to something or someone in their organization, how hard they work, and how long they stay as a result of that commitment. Employee handbook A written or electronic document containing summaries of the employers policies and benefits designed to familiarize employees with various matters affecting the employment relationship. Employee leasing A staffing alternative whereby employers form a joint-employment relationship with a leasing agency or professional employer organization (PEO) that takes on the responsibility for various HR-related functions, such as labor law compliance, compensation and benefits administration, recordkeeping, payroll and employment taxes. Employee Polygraph Protection Act of 1988 Prohibits most private employers from requiring employees or candidates for employment to submit to a lie detector test. The only time an employer may ask (but not require) an employee to take a polygraph test is in the conduct of an ongoing investigation into theft, embezzlement or a similar economic loss; or if the employee had access to property that was lost and the employer has a reasonable suspicion that the employee was involved. Employees who take a polygraph test may not be discharged or suffer any other negative consequences solely on the basis of the test, without other supporting evidence. The Act strictly mandates how polygraph tests may be administered and how the results are used. Employee Retirement Income Security Act (ERISA)of 1974 ERISA sets requirements for the provision and administration of employee benefit plans. Employee benefit plans include health care benefits, profit sharing and pension plans, for example. Employee referral program A recruiting strategy where current employees are rewarded for referring qualified candidates for employment. Employee relations A broad term used to refer to the general management and planning of activities related to developing, maintaining and improving employee relationships by communicating with employees, processing grievances/disputes, etc.

Employee retention Organizational policies and practices designed tomeet the diverse needs of employees and create an environment that encourages employees to remainemployed. Employee self-service A trend in human resource management that allows employees to handle many job-related tasks normally conducted by HR (such as benefits enrollment, updating personal information and accessing company information) through the use of a company's intranet, specialized kiosks or other Webbased applications. Employee stock ownership plan (ESOP) A trust established by a corporation that operates as a tax-qualified defined contribution retirement plan, but unlike traditional defined contribution plans, employer contributions are invested in the company's stock. Employee stock purchase plan An employer-sponsored plan that allows employees to purchase company stock below the fair market value. Employer of choice A term used to describe a public or private employer whose practices, policies, benefits and overall work conditions have enabled it to successfully attract and retain talent because employees choose to work there. Employment agency An organization that provides job placement assistance, either on a temporary or permanent basis, to individuals seeking employment opportunities. Employment-at-will A legal doctrine that states that an employment relationship may be terminated by the employer or employee at any time and for any or no reason. Employment agreement/contract A formal, legally binding agreement between an employer and employee outlining terms of employment such as duration, compensation, benefits, etc. Employment branding A combination of marketing, communication and technology used by an organization intended to give it greater visibility amongst a large population within a short timeframe. Employment cost index Conducted annually as part of the Department of Labors National Compensation Survey program, the Employment Cost Index measures the relative changes in wages, benefits and bonuses for a specific group of occupations.

Employment displacement Occurs when an employee is terminated as a result of position elimination. Employment practices liability Audit An assessment of an employers current policies and practices to determine potential areas of liability (i.e., discrimination, wrongful discharge and other violations of employee rights) typically conducted by an outside consulting or legal firm. Employment practices liability insurance (EPLI) An insurance plan that provides employers with protection against claims of discrimination, wrongful termination, sexual harassment or other employ men related issues made by employees, former employees or potential employees. Employment torts The grounds on which a lawsuit is based, such as wrongful discharge, negligence or invasion of privacy. Employment visas An immigration-issued document that allows aliens to obtain temporary residency for the purpose of pursuing employment opportunities within the United States. Employer Under EEOC Policy Guidelines, a person or persons engaging in an industry affecting commerce who has 15 or more employees for each working day in each of the 20 or more weeks in the preceding year or any agent thereof. Includes state and local governments, any federal agency subject to the provisions of Section 717 of the Civil Rights Act of 1964, as amended. Also includes any federal contractor or subcontractor or federally assisted construction contractor covered by Executive Order 11246, as amended. Employer information report EEO-1 Also known as Standard Form 100, this annual report shows the representation of female and minority employees in an employer's total workforce as well as in standard job groupings (i.e., officials and managers, professionals, etc.). This report must be filed each year by any employer with 100 or more employees (50 or more for government contractors). Employment practice Any recruitment, hiring, selection practice, transfer or promotion policy, or any benefit provision or other function of the employer's employment process that operates as an analysis or screening device.

Empowerment Enabling an individual to have responsibility, control and decision-making authority over the work he or she performs. English-only rules An employer policy or work rule that requires employees to only speak in the English language at all times while on the job or in the workplace. English as a second language (ESL)

English language training provided to individuals who do not speak English as their primary language. Environmental Scanning A process that systematically surveys and interprets relevant data to identify external opportunities and threats. Equal employment opportunity (EEO) A policy statement that equal consideration for a job is applicable to all individuals and that the employer does not discriminate based on race, color, religion, age, marital status, national origin, disability or sex. Equal opportunity clause The seven subparagraphs in Section 202 of Executive Order 11246, as amended. These paragraphs are required to be part of all contracts covered by the executive order. Equal Employment Opportunity Commission (EEOC) The federal agency responsible for publishing guidelines, enforcing EEO laws and investigating complaints of job discrimination based on race, color,religion, sex (including pregnancy), national origin, age or disability. Equal opportunity survey This report is sent to a substantial portion of all nonconstruction contractors each year. It requires them to provide to the OFCCP information regarding applicants, hires, promotions, terminations, compensation and tenure by race and gender. Nonconstruction contracts can expect to receive and complete this report every other year. Equal Pay Act of 1963 A federal law prohibiting employers from discriminating between male employees and female employees in terms of pay when they are performing jobs that are essentially the same or of comparable worth. Equal Treatment A legal doctrine used in discharge cases to determine whether an employers policies and practices are applied in a fair, consistent and nondiscriminatory manner. Equivalent position According to section 825.215 of the FMLA regulations, an equivalent position is one that is virtually identical to the employee's former position in terms of pay, benefits and working conditions, including privileges, perquisites and status. It must involve the same or substantially similar duties and responsibilities, which must entail substantially equivalent skill, responsibility and authority. Ergonomics The design of the equipment, furniture, machinery or tools used in the workplace that promotes safety, efficiency and productivity and reduces discomfort and fatigue. Error of central tendency A rating error occurring when the rater displays a propensity to assign only average ratings to all individuals being rated. Error of contrast An error occurring when raters assign ratings based on comparisons between individuals being rated

instead of using previously established organizational standards. Error of halo A rating error occurring when the rater assigns a rating based on individuals positive or negative characteristics. Error of inconsistency Occurs when no established organizational standards for rating an individual exist, and raters use different strategies for assigning ratings. Error of projection An error in rating, which occurs when raters are inclined to allow their own personal characteristics or values to affect the ratings they assign. Error of recency Occurs when raters assign a rating based on the individuals short-term versus long-term job performance. Error of standards Occurs when a rating is assigned based on impracticable standards established by the rater. Errors and omissions insurance An insurance policy providing businesses with coverage and protection against potential lawsuits from clients or customers. Essay appraisal An appraisal strategy requiring the rater to provide a narrative description of an individuals performance based on the raters performance observations. Essential functions The primary job functions or tasks that an individual must be able to perform with or without a reasonable accommodation. Ethical Leadership Broadly defined, as the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and promotion of such conduct among followers through two-way communication, reinforcement, and decisionmakingprocesses (M.E Brown and L.K. Trevino, Measures for Leadership Development Ethical Leadership Scale) Ethics A philosophy principle concerned with opinions about appropriate and inappropriate moral conduct or behavior by an individual or social group. Ethnic categories A grouping of individuals who are of the following decent: American Indian or Alaska Native; Asian; Black or African American; Native Hawaiian or Other Pacific Islander; and White. Executive A term used to define the highest-ranking individual or group of individuals reporting to a board of directors who have managerial or administrative authority for the business operations of the entire organization, business unit, or function. Executive compensation Compensation packages specifically designed for executive-level employees that include items such as base salary, bonuses, perquisites and other personal benefits, stock options and other relatedcompensation and benefit provisions. Executive development Training and educational programs designed to increase performance and further the development of leadership skills for executive and senior-level managerial employees.

Executive Order An official presidential directive that has the same force as a law. Executive Order 11246 of 1965 Administered and enforced by the Office of Federal Contract Compliance Programs (OFCCP), Executive Order 11246 prohibits federal contractors and federally-assisted construction contractors and subcontractors, who do over $10,000 in governmentbusiness in one year, from discriminating in employment decisions on the basis of race, color, religion, sex or national origin. The Executive Order also requires government contractors to take affirmative action to ensure that equal opportunity is provided in all aspects of their employment. Executive outplacement A program designed to provide displaced senior-level managerial and professional employees with career management and transition services that go above and beyond what is typically offered through a customary outplacement program. Executive retreat A team building and development approach designed for executive-level managers; conducted off-site and typically lasts from a few days to a week. Executive search firm An agency or organization used by employers to assist them with the selection and placement of candidates for senior-level managerial or professional positions. Exempt employees Employees who meet one of the FLSA exemption tests and who are paid on a fixed salary basis and not entitled to overtime. Exit interview An interview conducted at the time of an employees resignation, used to identify the underlying factor behind an employees decision to leave. Expatriate An employee who is transferred to work abroad on a long-term job assignment. Expectancy theory A motivational theory concluding that individuals feel a sense of pleasure and gratification when they have completed a challenging task and therefore are generally more motivated. Expedited arbitration A dispute resolution method used by the American Arbitration Association to resolve cases in accordance with a prescribed set of guidelines. External benchmarking The process of comparing an organizations current policies and practices to that of a competitor organization(s) to determine current and future trends in areas of employment and business practice (i.e., compensation, benefits, HR practices). Extrinsic motivator Organizationally controlled incentives, such as pay, benefits, incentives, achievement awards, etc., used to reinforce motivation and increase performance.

Extrinsic reward Work-related rewards that have a measurablemonetary value, unlike intrinsic rewards, such as praise or satisfaction in a job well done.

GLOSSARY OF MARKETING TERMS

Environment, external The complex set of physical and social stimuli in the external world of consumers. Environmental analysis Gathering data regarding political, cultural, social, demographic,economic, legal, international and ecological forces , identifying trends affecting agency. Environmental monitoring Keeping track of a changes in the environment. Erratic demand A pattern of demand for a product that is varied and unpredictable, e.g., some best sellers, or specific online databases randomly assigned in curriculum by teachers. Eked set A set of alternatives that are activated directly from memory--certain brandsconsidered during the buying process. Exchange All activities associated with receiving something from someone by givingsomething voluntarily in return. This is the heart of the marketing process. A library user gives time instead of money to borrow materials, but it is still an exchange. Exhibit The gathering and displaying of products, people, or information at a central location for viewing by a diverse audience. Most libraries have exhibits created by staff, community or other stakeholders. Experience survey A series of interviews with people knowledgeable about the general subject being investigated. Exploratory research A research design in which the major emphasis is on gaining ideas and insights. External data Data that originate outside the organization for which research is being done. Eactor analysis A body of statistical techniques concerned with study of interrelationshipsamong a certain set of variables--none of which is given the special status of a criterion variable. Economic environment Part of the macro environment encompassing wealth, income, productivity, inflation, credit, employment, etc. which affect the agency/librarys markets and opportunities. eighty-twenty principle The situation in which a disproportionately small number (e.g., 20%) of staff, products or users generate a disproportionately large amount (e.g., 80%) of a firms use/profits. A use analysis should be conducted to determine what the cause is.

Elasticity The degree that an economic variable changes in response to a change in another economic variable. For example, how much library use changes according to how far an individual must travel for library services.

Environment, external The complex set of physical and social stimuli in the external world of consumers. Environmental analysis Gathering data regarding political, cultural, social, demographic, economic, legal, international and ecological forces , identifying trends affecting agency. environmental monitoring Keeping track of a changes in the environment. Erratic demand A pattern of demand for a product that is varied and unpredictable, e.g., some best sellers, or specific online databases randomly assigned in curriculum by teachers. Evoked set A set of alternatives that are activated directly from memory--certain brands considered during the buying process. Exchange All activities associated with receiving something from someone by giving something voluntarily in return. This is the heart of the marketing process. A library user gives time instead of money to borrow materials, but it is still an exchange. Exhibit The gathering and displaying of products, people, or information at a central location for viewing by a diverse audience. Most libraries have exhibits created by staff, community or other stakeholders. Experience survey A series of interviews with people knowledgeable about the general subject being investigated. Exploratory research A research design in which the major emphasis is on gaining ideas and insights. External data Data that originate outside the organization for which research is being done. Earpieces Small advertising spaces on the front page of a newspaper, positioned either side of the main masthead. Mostly used in broadsheets (qv). They function usefully as reminders, and make offers which can be taken up immediately by using a highlighted telephone number, e-mail or Web site address. E-commerce Electronic commerce. Business transactions carried out via the Internet, using software that automates them. Typical of e-commerce activity is electronic shopping, including product selection, purchase, invoicing and payment. Financial transactions are made by credit card, for which a high level of security is necessary.

Economic life The viable or profitable working life of a product, usually one of high unit cost, or a piece of capital or production equipment. Such equipment arrives at a point in time when it is no longer economically viable. Conditions for this can vary from unusually heavy maintenance costs and high cost of component replacement, to high insurance premiums; all of which can provide reasons for replacement. The cost of running equipment at the end of its economic life may be reflected in the price of the end-product. Economic order level The point at which orders for the supply of a product for production, processing or re-sale is economically viable, and can produce a worthwhile profit for the supplier. Economic pricing The price of a product arrived at through taking into account every direct and indirect cost. This includes costs involved in conceiving it, designing, prototyping, manufacturing, warehousing, selling and distributing it. Also includes marketing activities and their administration; marketing communications such as advertising, packaging, public relations, sales promotion and after-sales service. All of which, of course, must be anticipated and planned for. A similar regime must be adopted when marketing a service. Economies of scale A costing system based on the optimistic marketing philosophy that the more you buy of a product, the less it should cost. This usually works in practice, since market forces can compel a manufacturer to reduce the unit price of a product on a sliding scale. It depends on how much you buy at a particular time. Ideally, any savings made on these deals are passed on to the consumer, wholly or in part, through the distribution chain. In the world of aggressively competitive marketing, this usually happens. Sometimes it does not, and one of the companies in the chain keeps the savings. This may be legal, but it is certainly not noble. As it is said, in this life you do not get what you deserve; you get what you negotiate. The true price of consumer goods can be estimated when the retailing companies declare their seasonal sales. Economy size An extra-large pack created for the purpose of stimulating or increasing demand for a product. The price of the pack is often pitched at that normally paid for a standard pack; or slightly higher. This is usually a temporary measure, sometimes also regional, where the brand is under competitive assault. ECU Extreme close-up. An instruction within a script. When you can see the individual hairs of an actors eyelashes, its an ECU. Editing Making changes to a piece of copy, augmenting, improving or condensing it; preparing it for press. In unskilled hands, this often means also mutilating it in the process. The term also includes adapting a piece of copy for different media. News releases often need considerable editing before appearing in a newspaper or magazine. Copy written for newspaper or house magazine editorial use would

need to be completely rewritten for an advertisement or a piece of print on the same theme. Editing Assembling and collating film or video material, manipulating, pacing and shaping it to create a finished presentation. This includes arranging the length of shots and cutting them precisely, so that the finished result portrays the facts and spirit of the script. The editor uses a high order of skill, experience and judgement in controlling the length and pace of each shot and scene, so that the finished film flows seamlessly from beginning to end. The editor strives to produce impact and rhythm not explicit in the written word or immediately apparent in the first prints or rushes. Edition A specific issue of a publication, distributed at a specified place and time. The place and time are usually displayed on the front page, and generally also throughout the publication. For example, an edition of the London Evening Standard displays its date, time, edition, serial number and price on its front page. There is also a codeword for the time of day it is issued; for example, Mid-day, or Final. Inside pages carry a running head showing the name of the publication, and page numbers. Radio Times publishes a number of regional editions, each displaying the name of the region alongside the information already mentioned. Editor A professional responsible for preparing the work of others for publication or broadcasting. In press media, the editor has total responsibility for what is published; plus many other responsibilities such as hiring and firing. Editor The professional responsible for collating filmed material, shaping it to form a presentation that portrays the facts and spirit of the script. Her skill in arranging the length of shots and precise cuts can produce impact, pace and rhythm not explicit in the script, or immediately apparent in the first prints. Editorial The text of a newspaper or magazine, news, features and comment, created and produced by its journalists. The term is sometimes used to describe leading articles written by the editor and her team, covering and commenting on major issues of the moment. The non-advertising content on television is usually referred to as programming. Editorial advertising Advertising written and designed to resemble editorial. Also termed advertisement promotions or advertorials. This is an effective marketing technique, especially when the advertorial is in the style of the publication in which it appears. There are certain rules governing this type of advertising. In particular, the British Codes of Advertising and Sales Promotion (BCASP) stipulate that advertorials should be designed and presented in such a way that it is clear that they are advertisements. The words Advertisement Feature, or Advertisement must appear at the head of the presentation. When considering creating an advertisement in the editorial

style of a publication, it is prudent to get permission or approval from the editor; better still, get the advertisement director to get it for you. E-mail Shorthand for electronic mail: communication of messages and computer files between individual users computers on the Internet, via an independent central computer a server. While e-mail is no real substitute for letters and conventional correspondence, it has several characteristics specific to the computer age: _ It is immediate; though delays are frequent, often because of equipment problems. _ One message can be distributed to a large number of destinations at the same time. This facility is used constantly by companies engaged in the distribution of news releases. _ The medium encourages brevity; conventionally, e-mail messages are short and to the point. _ More complicated and sophisticated material, including graphics, can be electronically attached to it. _ It can be replied to, and the reply received, almost at once, which helps fast decision-making. There is a downside to the speed made possible by e-mail; you can receive hundreds of e-mails every day, all of which may need to be considered and acted on. Parkinsons Law definitely rules here (the notion that work expands so as to fill the time available for its completion). Embargo A time constraint on the publication of information made available in a news release. In fact, it is more of a request by the organization issuing the release, than an order to be obeyed. An editor is not obliged to respect the request. But if he does not, he is unlikely to receive important news from the organization in future, possibly robbing him of a good and timely story. It is a matter of good relationships between an organization and its media contacts. The embargo consists of the word Embargo, or Embargoed until. . . plus a date and time, printed at the top of a news release. It appears before the heading, in a position that cannot be overlooked. Embargo A ban on goods being imported into a country; often for political reasons, or for the protection of that countrys own products and industries. This usually amounts to the same thing. Embargoes can be initiated by governments of importing countries, or by those whose companies are doing the exporting. Embossed finish Paper with a raised or depressed surface resembling cloth, wood, leather or other textures. Embossing t Impressing an image into paper or board from the back, to raise the images surface. The raised image is printed. Where the raised impression is unprinted, this is termed blind embossing.

Em dash A long printed dash, the width of an em. Do not confuse this with the hyphen, which is shorter and has a different semantic function. Emotional appeal The basis of an advertising message having strong emotional character. Fundraising advertising run by charitable organizations is often like this. Emotional appeals are often mixed with factual, logical and rational arguments, to make them more effective. Emulsion side The side of a film coated with silver halide emulsion. This should face the lens during exposure. Emulsion side In plate-making practice, the side of a film in intimate contact with the plate. Publications accepting film rather than artwork may specify either right reading emulsion side down, or right reading emulsion side up, depending on their individual plate-making and production requirements. This means that, in both cases, the copy reproduces correctly on the press.

Enclosure An additional item enclosed as part of a mailshot. This may be a piece of print such as a brochure or reply card, a photoprint, a product sample or some other object in the envelope, in support of the main promotional item. The main item is often a sales letter. Encoding Characters printed using ink containing iron, which can be recognized by magnetic ink character recognition systems (MICR). This is found on cheques (bank checks) and other security documents, and often on reply cards enclosed in mailshots, using the characters for keying.

Endorsement A statement by a personality or celebrity, showing a preference for a product or service being advertised or promoted. In press advertising and print, the endorsing celebrity is usually shown and named. In television advertising, the endorser is often the main presenter, sometimes actually speaking the promotional copy, either to camera or as a voice-over. It follows that an endorsing celebrity should be known to the target audience, or at least famous for some activity connected with the product. Bear in mind that today, even with virtual saturation of news and gossip by the media, some members of the public may not recognize your endorser. End user The actual user of a product, as distinct from its purchaser or specifier. A computer system, for example, may be recommended or specified by a creative manager, approved by a managing director, signed off by an office manager and paid for by a finance director. When the machine arrives on your desk and you switch it on,

you are the end user. Some markets are not nearly as straightforward as this. The pharmaceutical market, for example, is particularly complex. As a patient, you are the end user of a medicine, but you dont specify, approve or purchase it. The pharmacist stocks the product, but has no choice as to its distribution. The doctor does specify the product, but neither handles nor sells it. It follows that careful marketing planning is called for here, especially as far as the promotional message is concerned. Markets for products aimed at children are complicated, but in a different way. The child is the end user, and often specifies the product. The parent examines the product, determines its suitability, sometimes consults another parent, approves and pays. Enlargement Popularly referred to as a blow-up. A print made from a negative, blown up to an unusually large size. Enterprise zone A piece of land or real estate dedicated to the setting up and development of businesses. In the European Union, conditions applying to such zones are preferential, offered to entrepreneurs as inducements to transfer to the areas. The inducements include tax breaks, inexpensive or interest-free loans and other financial assistance, professional advice and business counselling. In the UK, such inducements come from local and national government, and from the European Union. Equilibrium price The price of a product arrived at when the demand for the product is the same as its supply. This does not usually last for long, and the price rises or falls in line with movement in the marketplace. Escalator cards On the London Underground and urban rail transportation systems throughout Europe, small advertising posters displayed on the walls of its escalators (moving stairs). Esparto A printing and writing paper made from, or containing substantial quantities of, esparto grass. This is a long-fibre material, giving excellent bulk to the paper, and a satisfying crackle. Established brand A brand well enough known in its markets, and often elsewhere, that constant introduction and explanation is unnecessary. The best current examples include Coke, Pepsi, the BBC, CNN, Microsoft, Virgin, Jaguar, Rolls-Royce and Toyota. Estimate The costing of a job, prepared in advance by a printer, production house, advertising agency, photographer or other supplier. Estimates are not normally binding; in the UK, quotations are, so be careful. E-tailing

Electronic retailing. Retail transactions carried out via the Internet, using software that automates them. Typical e-commerce activities include electronic shopping, product selection, purchase, invoicing and payment. Financial transactions are made by credit card, store or debit card, for which a high level of security is necessary. Efficient though e-tailing may be, the downside is the physical delivery of the goods, which might not be as efficient. Etching Producing an image on a printing plate by chemical or electrolytic action. Ethernet A proprietary local area network, together with its products and technical specifications. It was designed in collaboration with the Digital Equipment Corporation and Intel. Ethical advertising Advertising by suppliers of medicines and other treatments prescribed exclusively by qualified medical practitioners. Such advertising is not aimed at the general public, but at clinicians, doctors and pharmacists. Pharmaceutical products marketed to the public are termed proprietaries. Both types of advertising are subject to their own licensing terms and codes of practice. Eurodollar The US dollar is described in this way when held by banks in Europe, or by European companies, or when used as a trading currency in Europe. Excess demand A market condition in which demand for a product exceeds the ability of suppliers to produce it. In this climate, prices tend to rise. Excess supply The reverse market condition to excess demand, in which prices tend to fall. Exchange rate The level of value at which one countrys currency can be exchanged for another. In todays volatile markets for currency and equities, the rate changes virtually every day. In the 1980s, the pound sterling hovered very narrowly around $2.40. At the time of writing this edition, it varies from $1.60 to $1.40. Some years ago, the value of the pound fell almost to a dollar. Vast fortunes have been made, and still can be made, from cashing in on the difference between exchange rates. Exclusive A major news story or interview, offered exclusively to, or acquired exclusively by, a newspaper, magazine, television or radio station, is termed an exclusive. Among journalists this is also referred to as a scoop, especially where a newspaper or broadcast channel gets an exclusive after having pursued it aggressively. The terms apply also to photographic material. Exhibition A venue at which products and services or works of art are put on show, either for business transactions or inspection and enjoyment. They are popularly referred to as shows; in the USA, expositions.

Exhibitions vary greatly, both in size and content. Mini-exhibitions, usually local or regional, are aimed at local business, trade and technical audiences. They are organized by companies specializing in such activities, and feature a small number of related exhibitors. Each exhibitor sends invitations to its customers, clients and prospects, together with free tickets; or gets the organizer to do it. Manufacturers, distributors and service suppliers often organize their own private mini-exhibitions, sending invitations to a highly focused list. At the other end of the scale, there are huge trade exhibitions, such as Hanover; and the Farnborough and Paris air shows. In the UK, exhibitions aimed at the general public include the Ideal Home Exhibition and the Motor Show. Expanded A type of a width greater than regular, standard or normal. Expense-to-profit ratio The ratio of a companys expenditure on marketing operations to its profits from them. Expense-to-sales ratio Marketing planning The ratio of marketing expenditure to revenue from sales. This is one of a companys financial measures for controlling its expenditure, aimed at achieving maximum profit from marketing operations. It also needs to employ techniques for calculating its expense-to-profit ratio. Exploded view An illustration of an object, such as a piece of equipment, showing how its components relate to each other. The illustration is complete in itself, and in proper perspective, showing its components separated, usually floating, or with sections cut away to show what is underneath. Exposure The amount of time to which readers, viewers and listeners are given opportunities to see and hear advertising, editorial and other messages. As an example, in the UK the Radio Authority has a number of standards for measuring audience exposure: _ weekly reach the number in thousands or as a percentage of the UK/area adult population who listen to a station for at least five minutes in the course of an average week; _ average hours the total hours of listening to a station during the course of a week: per head, across the total adult population of the UK/area; per listener, across all those listening to the station for at least five minutes; _ total hours the overall number of hours of adult listening to a station in the UK/area in an average week; _ share of listening the percentage of total listening time accounted for by a station in the UK/area in an average week. Exposure In photographic processes, the step during which light produces an image on a light-sensitive coating. The term also refers to the amount of light allowed to reach the sensitive material.

Extended wider version of a roman or standard typeface. Also termed expanded.

Extended guarantee An extra guarantee period, usually paid for by the customer, during which the terms of the original guarantee are honoured and can be enforced. If a customer wants an extended guarantee, the extension is usually added to the original at the time of purchase. Extranet An internal network available to specified external users. Extranets are used mainly for teleworking and data exchange among different organizations that wish to keep the content private among members of the network. They also enable staff working away from the office to keep in touch with it and with each other. In marketing communications, extranets exist between advertisers and suppliers such as printers and research organizations, where the frequency and density of the traffic justifies the expense. Since extranets are essentially intranets connected to the public Internet, security measures are essential for protection against hackers and unauthorized users. Ex-works The condition or status of a product as it leaves the factory. The ex-works price of a product is its basic price to customers, before distribution costs have been added. Other costs usually added include packaging, bulk crating, warehousing and insurance. Eye-movement research Laboratory techniques for determining the way readers look at newspaper and magazine pages, particularly advertising material. The reader taking part in thetests is seated in front of a page of advertising. A special camera records the amount of time the reader spends looking at various elements on the page, and the sequence in which this happens. The main problem with this research lies in the analysis and interpretation of the findings, and their subsequent application to advertisement design. E-zine An electronically distributed magazine. A magazine created and produced electronically, and distributed via the Internet or corporate intranet. Many house journals are produced and distributed in this way. The main advantages include fast distribution speed at low cost or virtually no cost; and that no printer is involved. Many company e-zines are produced in-house, either by company personnel or by outside specialists.

GLOSSARY OF FINANCIAL TERMS

Equipment trust certificate A type of security, generally issued by a railroad, to pay for new equipment. Title to the equipment, such as a locomotive, is held by a trustee until the notes are paid off. An equipment trust certificate is usually secured by a first claim on the equipment. Ex-dividend A synonym for "without dividend." The buyer of a stock selling exdividend does not receive the recently declared dividend. When stocks go exdividend, the stock tables include the symbol "x" following the name. Ex-rights Without the rights. Corporations raising additional money may do so by offering their stockholders the right to subscribe to new or additional stock, usually at a discount from the prevailing market price. The buyer of a stock selling ex-rights is not entitled to the rights. Extra The short form of "extra dividend." A dividend in the form of stock or cash in addition to the regular or usual dividend the company has been paying Earnings report A statement, also called an income statement, issued by a company showing its earnings or losses over a given period. The earnings report lists the income earned, expenses and the net result. (See: Balance sheet) Earnings the profits of a company over a specified period of time usually after tax. Earnings Yield earnings per share (net of tax) as a percentage of the share price. Efficient Market Hypothesis (EMH) a theory that says security prices reflect all available information thus making it difficult for investors to make abnormal returns. Emerging Market the market of a country which is experiencing rapid economic growth but whose income per capita usually makes it a low to middle income economy. Equity shares which represent ownership of a company. Equity holders may receive dividends and will make or lose money if the shares appreciate or depreciate in value. Equity Risk Premium the expected excess return above the risk-free rate of interest which is required to compensate for the riskiness of investing in shares. EUREX the European Exchange which is a merger of the German DTB exchange and the Swiss SOFFEX exchange. Euro Libor the London interbank offer (lending) interest rate on the Euro. Eurobond a bond denominated in a different currency to the country of issue, e.g. a dollar bond issued in London is a dollar denominated Eurobond.

Eurocurrency a short term deposit/loan made outside of the country of that currency, for example, a 3 month yen deposit/loan made in London. Eurodollar a short term deposit or loan made in dollars outside the United States. Eurobank a bank that specializes in making short-term deposits and loans in a variety of foreign currencies. European Option an option that can only be exercised upon maturity. Exchange Rate the rate at which one currency can be exchanged for another. Exercise Price the price at which an option may be exercised. Also known as the strike price. Exotic Option an option which has special features compared to standard put/call options.

Extraordinary items Unusual transactions showing up on a company's financial statement that will not recur every year. Extraordinary items may be restructuring, the writing off of losses due to changes in valuation methods, settlement of lawsuits, exceptionally high profit or loss from foreign exchange, or similar transactions not common for the company. EBITDA is a contraction of the term Earnings Before Interest, Taxes, Depreciation, andAmortization. It is a commonly-used formula designed to reveal the approximate operational results of a business on a cash flow basis Equity - Residual INTEREST in the ASSETS of an entity that remains after deducting its LIABILITIES. Also, the amount of a business' total assets less total liabilities. Also, the third section of a BALANCE SHEET, the other two being assets and liabilities. Equity Account - ACCOUNT in the EQUITY section of the BALANCE SHEET. Includes CAPITAL STOCK, ADDITIONAL PAID IN CAPITAL and RETAINED EARNINGS. Equity Method of Accounting - Investors cost basis is adjusted up or down (in proportion to the % of stock ownership) as the investee's retained earnings fluctuation; used for long-term investments in equity securities of affiliate where holder can exert significant influence; 20% ownership or greater is arbitrarily presumed to have significant influence over the investee. Equity Securities - CAPITAL STOCK and other SECURITIES that represent ownership shares, or the legal rights to purchase or acquire CAPITAL STOCK.

Error - Act that departs from what should be done; imprudent deviation, unintentional mistake or omission. Escrow - Money or property put into the custody of a third party for delivery to a GRANTEE, only after fulfillment of specified conditions. ESOP - See EMPLOYEE STOCK OWNERSHIP PLAN. Estate Tax - Tax on the value of a DECENDENT'S taxable estate, typically defined as the decedent's ASSETS less LIABILITIES and certain expenses which may include funeral and administrative expenses. Estimated Tax - Amount of tax LIABILITY a taxpayer may expect to pay for the current tax period. Usually paid through quarterly installments. Estimation Transactions - Activities that involve management judgments or assumptions in formulating account balances in the absence of a precise means of measurement. Evidential Matter - Underlying ACCOUNTING data and other corroborating information that support the FINANCIAL STATEMENTS. 22 Exchanges - Transfer of money, property or services in exchange for any combination of these items. Excise Tax - Tax or duty on the manufacture, sale, or consumption of commodities. Excluded Income - See EXCLUSIONS. Exclusions - Income item which is excluded from a taxpayer's gross income by the INTERNAL REVENUE CODE or an administrative action. Common exclusions include gifts, inheritances, and death proceeds paid under a life insurance contract. Also known as excluded income. Executor - Person appointed by a will to manage a DECENDENT'S estate. Exempt Organization - Organization which is generally exempt from paying federal income tax. Exempt organizations include religious organizations, charitable organizations, social clubs, and others. Exemption - Amount of a taxpayer's income that is not subject to tax. All individuals, TRUSTS, and estates qualify for an exemption unless they are claimed as a dependent on another individual's tax return. Exemptions also are granted to taxpayers for theirdependents. Expatriation Tax - Individuals that loose or terminate their residency within the 10 year period immediately preceding the close of a tax year, if the termination or loss is for the sole purpose of avoiding tax.

Expectation Gap - The difference in perception between the public and the CPA as a result of accounting and audit service. Expenditure - Payment, either in cash, by assuming a LIABILITY, or by surrendering ASSET. Experienced Auditor - An AUDITOR that has a reasonable understanding of audit activities and has studied the company's industry as well as the accounting and auditing issues relevant to the industry. Exploration Expenditures - Unlimited deductions are allowed for a taxpayer's expenses incurred while searching for any ore or mineral deposit (except oil or gas). Exposure Draft - Document issued by the AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA), FINANCIAL ACCOUNTING STANDARDS BOARD (FASB), GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) or other standards setting authorities to invite public comment before a final pronouncement is issued. Extension - Time granted by a taxing authority, such as the INTERNAL REVENUE SERVICE (IRS), a state or city, which allows the taxpayer to file tax returns later than the original due date. Extent of Tests of Control - Each year the AUDITOR must obtain sufficient evidence about whether the company's internal control over financial reporting, including the controls for all internal control components, is operating effectively. External Reporting - Reporting to stockholders and the public, as opposed to internal reporting for management's benefit. Extinguishment of Debt - To get rid of the liability by payment; to bring to an end. Extraordinary Items - Events and transactions distinguished by their unusual nature and by the infrequency of their occurrence. Extraordinary items are reported separately, less applicable income taxes, in the entity's statement of income or operations.