Glossary of Business Terms – “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.
Lapse = The termination of an option without trade in the underlying security or commodity.
Law of diminishing returns (Economics) – 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.
Leads = a potential sales prospect who may have expressed an interest in your product or service. For more information, read the following articles:
- Where to Find Customers?
- What is the Value of a Lead?
- Lead Generation: Where to Buy Your Sales Leads
Lead Generation = the process of driving leads to your business or website, which is one of the first steps of the sales conversion funnel. It is the process of finding interested customers who you can convert into buyers. For more information, read the following articles:
- How to Generate Leads and Grow Your Business
- Managing Your Lead Qualification Process Effectively
- The Dangers of Using the Wrong Lead Generation Tool
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.
Lifestyle Entrepreneur (Entrepreneurship) = A specific breed of entrepreneurs who offer a different and richer view of success than those who are mainly after wealth accumulation. For more information, read the following articles:
- Home-Based Lifestyle Entrepreneur: Freedom, Not Money
- Lifestyle Entrepreneurship: Making a Profit Out of Passion
- Some Business Owners Seek a Healthier Lifestyle
Limited Liability – The restriction of an owner’s loss in a business to the amount of capital he or she has invested in it.
Limited Liability Company = A company in which the number of people provide finance in return for shares. For more information, read the following articles:
- Choosing an LLC Structure for your Business
- What is Limited Liability Company?
- How to Form LLC or LLP for a Start-Up Home Business
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 Tail = The phrase “long tail” pertains to search engine results. The “long tail” of search follows the thinking that the combined total results of multiple less-popular terms will exceed the results of a single more-popular term. Many webmasters have given up their hope of ranking well for the extremely popular terms, and instead are focused on ranking well for the less-popular but more abundant terms or phrases.
Long-term Liabilities = The liabilities (expenses) that will not mature within the next year.