Glossary - Agribusiness Management - page 425

ego status A component of Maslow's need hierarchy that suggests that once a comfortable
degree of social acceptance has been attained, most individuals become concerned with
their self-esteem or status relative to their group.
elastic In supply and demand analysis, a condition where a change in price brings a pro-
portionately larger change in quantity supplied (demanded).
elasticity In economics, a measure of the responsiveness of one variable to changes in
another.
electronic data interchange (EDI) systems An information technology that allows busi-
ness interactions between fi rms to take place electronically using a standard format.
enterprise requirement planning (ERP) A system used to connect a fi rm's manufactur-
ing systems with other areas of the fi rm such as fi nance, customer relationship manage-
ment, human resources, and supply chain management, integrating internal and external
information across the entire organization.
equilibrium In economics, a state or situation in which opposing forces balance each
other and stability is attained.
equity capital Funds provided by the owners of a business either directly or by reinvesting
profi ts back into the business; the risk capital of a fi rm.
evaluating results A step in the planning process; involves a careful review and assess-
ment that helps determine whether or not the plan is on course.
exchange rates The relative value of one country's currency compared to that of another

country.
exit interview An interview with a departing employee that is designed to better under-
stand the employee's attitudes and reasons for leaving and to provide suggestions for
improving the workplace.
expected product A part of the total product concept; surrounds the generic product
with the minimum set of features / services that the customer expects when they make a
purchase.
expenditure An outlay of cash for operating or investment purposes.
expenses The value of resources consumed by the business in acquiring, producing, and
selling goods and services; includes only those resources consumed by actual sales
during the accounting period.
external failure costs Costs incurred when the product or service fails once it is in the

consumer hands.
f actors of production In economics, land, labor, capital and management; scarce resources
used in the production process.
farm As defi ned by USDA, any rural unit grossing $1,000 or more per year in agricultural
sales.
farm-food marketing bill A breakdown of the consumer's food dollar into the proportion
the farmer gets for producing the raw material and the proportion the food industry gets
for marketing (in a broad sense) the fi nal product.
fast food / quick service restaurants Limited menu and limited service restaurants
focused on providing convenience and speed of service.
fi eld marketing A sales strategy that puts marketing tools in the hands of the agribusiness
sales force; the salesperson is asked to treat his or her sales area as a mini-marketplace,
and use marketing tools to assess opportunities, and to develop and implement a sales
plan that is very focused on the needs of the specifi c territory served.
fi nancial accounting Financial record keeping conducted in a manner that meets the report-
ing requirements of governmental units, lending institutions, investors, and suppliers.