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L
Labor
force:
people of working age who are
available for paid employment, including the unemployed looking for
work, but excluding categories such as full-time students, careers, and
the long-term sick and disabled.
(advertisement)
Lapse:
the termination of an option
without trade in the underlying security or commodity.
Law
of diminishing returns:
a rule stating that as one factor
of production is increased while others remain constant, the extra
output generated by the additional input will eventually fall. The law
of diminishing returns therefore means that extra workers, extra
capital, extra machinery, or extra land may not necessarily raise output
as much as expected.
lemon:
a product, especially a car, that
is defective in some way.
Letter
of agreement:
a document that constitutes a
simple form of contract.
Letter
of Credit:
a letter issued by a bank that
can be presented to another bank to authorize the issue of credit or
money.
Leverage:
a method of corporate funding in
which a higher proportion of funds is raised through borrowing than
share issue.
Liability:
a debt that has no claim on a debtor's assets or less claim than another
debt.
Liability
insurance: Risk
protection for actions for which a business is liable.
License:
a contractual arrangement, or a document representing this, in which one
organization gives another the rights to produce, sell, or use something
in return for payment.
Lifestyle:
A pattern of living that comprises an individual's activities, interests
and opinions.
Limited
partnership: A legal partnership where some owners are
allowed to assume responsibility only up to the amount invested.
Liquid assets: financial
assets that can be quickly converted to cash.
Liquidity:
The ability of a business to meet its financial responsibilities. The
degree of readiness with which assets can be converted into cash without
loss.
Loan
agreement: A document that states what a business can and cannot
do as long as it owes money to the lender.
Loan:
Money lent with interest.
Long-term
liabilities: The liabilities (expenses) that will not mature
within the next year.
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