What Is an Engagement Letter? An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs. The purpose of an engagement letter is to set expectations on both sides of the agreement. Key
What Is Engel’s Law? Engel’s Law is an economic theory put forth in 1857 by Ernst Engel, a German statistician. It states that the percentage of income allocated for food purchases decreases as a household’s income rises, while the percentage spent on other things (such as education and recreation) increases. Key Takeaways Engel’s Law is
What Is Enhanced Indexing? Enhanced indexing is a portfolio management approach that attempts to amplify the returns of an underlying portfolio or index and outperform strict indexing. Enhanced indexing also attempts to minimize tracking error. This type of investing is considered a hybrid between active and passive management; it combines elements of both approaches. Enhanced indexed
What Is Enhanced Oil Recovery (EOR)? Enhanced oil recovery (EOR), also known as “tertiary recovery,” is a process for extracting oil that has not already been retrieved through the primary or secondary oil recovery techniques. Although the primary and secondary recovery techniques rely on the pressure differential between the surface and the underground well, enhanced
What Is an Enrolled Agent? An enrolled agent (EA) is a tax professional authorized by the United States government to represent taxpayers in matters regarding the Internal Revenue Service (IRS). EAs must pass an examination or have sufficient experience as an IRS employee and pass a background check. Enrolled agents first appeared in 1884 due to issues
What Was Enron? Enron was an energy-trading and utility company based in Houston, Texas, that perpetrated one of the biggest accounting frauds in history. Enron’s executives employed accounting practices that falsely inflated the company’s revenues and, for a time, making it the seventh-largest corporation in the United States. Once the fraud came to light, the
What Is Enronomics? The term Enronomics refers to a fraudulent accounting technique used by executives and accountants at Enron to hide losses, toxic assets, and massive amounts of debt from shareholders and the general public. The scheme involved the use of accounting tricks. Although the losses were real according to generally accepted accounting principles (GAAP)
What is Enterprise Application Integration? Enterprise application integration is the translation of data and other commands from one application format into another. Key Takeaways Enterprise application integration is an ongoing process between two incompatible systems, which can involve hardware or software components, or both.Enterprise application integration is important because it allows the various departments or
What Is Enterprise Information Management (EIM)? Enterprise information management (EIM) refers to the optimization, storage, and processing of data created and used by an enterprise. Enterprise information management seeks to ensure that data, as a business asset, is managed securely through its lifecycle and is accessible to the appropriate business processes. Key Takeaways Enterprise information
What Is Enterprise Risk Management (ERM)? Enterprise risk management (ERM) is a methodology that looks at risk management strategically from the perspective of the entire firm or organization. It is a top-down strategy that aims to identify, assess, and prepare for potential losses, dangers, hazards, and other potentials for harm that may interfere with an
