Equity Risk Premium – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Equity Risk Premium?Equity risk premium refers to rate of profit or return that can be earned on financial instruments above the average rate of return. The equity risk premium is an incentive which motivates risky investors to invest in high-risk assets....

Enterprise Resource Planning – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is Enterprise Resource Planning (ERP)?Employer or Enterprise resource making plans (ERP) is a process wherein an organization or a company, a producer, or manager integrate the vital elements of its commercial enterprise. An ERP management system integrates...

Endogenous Growth Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Endogenous Growth Theory?The endogenous theory is a financial theory which argues that financial or economic growth is generated from internal (rather than external) procedures and inputs. The theory notes that productivity can be improved by the efficiency of...

Employee Profit Sharing Plan – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is an Employee Profit Sharing Plan?Employee profit sharing plan (EPSP) or a profit share plan is when a company allocates a share of profits to its employees. An EPSP is generally based upon performance, such as annual profitability. ESPS are thought to improve...

Emergency Economic Stabilization Act of 2008 – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Emergency Economic Stabilization Act of 2008 (EESA)?In 2008, Congress took bailout measures to repair the damage from the subprime mortgage crisis and passed the EESA. This authorized the government to buy out $700 billion in troubled assets from banks and...

Electronic Data Interchange (EDI) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Communications & Negotiation

What is Electronic Data Interchange (EDI)?Electronic data interchange (EDI) is an electronic transmission system which allows transferring data according to predefined message standards from one system to another system without any intermediary.How Does an Electronic...

Egocentrism – Explained

by TheBusinessProfessor | Feb 23, 2025 | Management, Leadership, & Organizational Behavior

What is Egocentricism?The term egocentrism refers to a person’s inability to comprehend that views or opinions may be different from their own. More specifically, it is a cognitive bias that limits one’s understanding of others to her own...

Efficient Market Hypothesis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Efficient Market Hypothesis?The efficient market hypothesis (EMH) is a financial market theory which states that the market price of a financial asset reflect all the available information. An efficient market shows all the market information available at...

Edgeworth Price Cycle – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Edgeworth Price Cycle?An Edgeworth price cycle is a cyclical, asymmetric sequence that is observed in the gasoline markets across the globe. The cycle demonstrates a rapid increase in prices and the followed by gradual decreases in prices to come back to...

Export Declaration – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is a Shipper’s Export Declaration (SED)?An export declaration, or shippers export declaration (SED), is an official document that contains details of goods that are being exported or imported. It is generally completed by the exporter and introduced to port...