In the world of business, it’s important to know the right words. Whether you’re running a company, working in an office, or just learning about business, understanding key terms can help you succeed.
This glossary is all about business terms that start with the letter “A.” It explains what these words mean in a simple way, so you can use them with confidence. From basic accounting to everyday business practices, this guide is here to help you get familiar with important business languages. Let’s start exploring the “A” terms in our business glossary.
E-Commerce
The buying and selling of goods and services over the internet.
E-Business
The conduct of business processes on the internet, including buying, selling, and customer service.
E-Learning
A digital-based learning method that utilizes electronic resources such as online courses, webinars, and virtual classrooms.
Earnings Before Interest and Taxes (EBIT)
A measure of a company’s profitability that excludes interest and income tax expenses.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A financial metric that assesses a company’s profitability before accounting for major non-operating expenses.
Earnings Per Share (EPS)
A financial ratio that measures the amount of profit allocated to each outstanding share of common stock.
Economic Indicator
A statistic that provides insight into the economic performance of a country or business sector.
Economic Order Quantity (EOQ)
The optimal order quantity that minimizes the total cost of inventory, including ordering and holding costs.
Economy
A system that governs the production, distribution, and consumption of goods and services.
Ecosystem
A network of interconnected businesses, suppliers, and customers that interact within an industry.
Elasticity
A measure of how much demand or supply responds to changes in price or other factors.
Electronic Data Interchange (EDI)
A standardized electronic format for exchanging business documents between organizations.
Employee
An individual hired by a company to perform specific tasks in exchange for compensation.
Employee Benefits
Non-wage compensation provided to employees, including health insurance, retirement plans, and paid time off.
Employee Engagement
The level of enthusiasm and commitment an employee has towards their work and organization.
Employee Retention
Strategies and policies that organizations use to retain their employees and reduce turnover.
Empowerment
The process of giving employees the authority and confidence to make decisions and take action.
Endorsement
A public declaration of support for a product, service, or individual, often used in marketing.
Engagement Rate
A metric that measures the level of interaction users have with digital content, such as likes, comments, and shares.
Enterprise Resource Planning (ERP)
A software system that integrates core business processes such as finance, HR, and supply chain management.
Environmental Analysis
The assessment of external and internal factors that impact an organization’s performance.
Equity
The ownership interest in a company, represented by shares or stock.
Equity Financing
Raising capital through the sale of shares rather than taking on debt.
Equity Ratio
A financial metric that indicates the proportion of a company’s assets financed by shareholders’ equity.
Event Marketing
A promotional strategy that involves creating live or virtual experiences to engage customers.
Exit Strategy
A planned approach for an investor or business owner to sell or leave their investment or business.
Expatriate
An employee who is sent to work in a foreign country for a business assignment.
Expenditure
The total amount of money spent by a business on goods, services, and operations.
External Audit
An independent review of a company’s financial statements to ensure accuracy and compliance with regulations.
External Environment
External factors such as market trends, regulations, and competition that impact a business.
Exclusivity
A contractual agreement that grants a single entity the sole right to distribute, sell, or market a product or service.
Expected Value
A calculated average outcome based on probabilities of different scenarios.
Efficiency
The ability to achieve maximum productivity with minimal wasted effort or expense.
E-portfolio
A digital collection of an individual’s work, achievements, and skills, often used for job applications and academic purposes.
E-recruitment
The process of using online platforms and digital tools to attract, screen, and hire employees.
Emerging Market
A developing economy with rapid growth and increasing industrialization.
Earned Income
Income received from employment or business activities rather than passive investments.
Earned Value Management (EVM)
A project management technique that measures project performance against cost and schedule.
Earnings Management
The practice of using accounting techniques to produce desired financial outcomes.
Environmental, Social, and Governance (ESG)
A framework used to evaluate a company’s ethical impact and sustainability efforts.
E-commerce Platform
A digital system that facilitates online buying and selling.
Economic Value Added (EVA)
A financial performance measure that calculates a company’s true economic profit.
Equipment Financing
A loan or lease option used to acquire business equipment.
Escrow
A financial arrangement in which a third party holds funds or assets until specified conditions are met.
Exchange Rate
The value of one currency in relation to another.
Executive Summary
A brief overview of a business report or plan that highlights key points.
Exchange-Traded Fund (ETF)
An investment fund that is traded on stock exchanges like a stock.
Exclusive Distribution
A marketing strategy where a supplier grants exclusive rights to a single distributor.
Elastic Demand
A market condition where consumer demand significantly changes in response to price fluctuations.
E-signature
A digital signature used to authenticate electronic documents.
Embezzlement
The fraudulent misappropriation of funds or property by an individual in a position of trust.
End User
The final consumer of a product or service.
Energy Management
The process of monitoring and optimizing energy use to reduce costs and environmental impact.
Economic Growth
An increase in a country’s production of goods and services over time.
Equity Market
A marketplace where company shares are bought and sold.
Expense Ratio
A financial metric that shows the cost of managing an investment fund as a percentage of assets.
Executive Compensation
The total pay and benefits provided to top executives in a company.
Enterprise Architecture
A strategic framework for managing an organization’s IT infrastructure and processes.
Engagement Letter
A formal agreement outlining the terms of a professional service.
Escalation Clause
A contract provision allowing price increases under certain conditions.
External Stakeholder
Individuals or groups outside a business that have an interest in its operations.
Environmental Impact Assessment (EIA)
A process for evaluating the environmental effects of a proposed project.
Early Adopter
A consumer who quickly embraces and uses new technology or products.
Endowment
A donation or financial investment provided to an institution, often for a specific purpose.
E-procurement
The use of digital systems for business purchasing processes.
Employer Branding
The reputation and image a company builds to attract and retain employees.
Employee Stock Ownership Plan (ESOP)
A program that provides employees with company shares as part of their benefits.
Equity Stake
The ownership interest held in a business by shareholders.
Excess Capacity
The unused production capability of a business.
Executive Coaching
A professional development process aimed at enhancing leadership skills.
Employment Contract
A legally binding agreement between an employer and an employee.
