LEASE -
Contract,
usually in the form of a written rental agreement, giving the right to
use property for a certain length of time by paying rent.
LEASEHOLD
IMPROVEMENT
- An improvement (for example redecorating) on premises.
LEDGER
- A file or
group of accounts; the "book" of final entry.
LETTER
OF CREDIT -
An engagement by a bank to make payment to another bank upon
presentation
of a given
set of documents within a specified time.
LEVERAGE
- A term
used to describe the amount of debt in your business in relation to the
amount of equity. To measure the degree of leverage in your business,
use
the debt to tangible net worth ratio.
LIABILITIES
- The
claims of creditors against the total assets; the debts of the business
or money owed by the business.
LIABILITY
INSURANCE
- Risk protection for actions for which a business is liable.
LIMITED
PARTNERSHIP
- A legal partnership where some owners are allowed to assume
responsibility
only up to the amount invested.
LIQUIDATE
- Settle
the accounts of business; convert into cash.
LIQUIDATION
VALUE
- The amount for which an asset can be sold.
LIQUIDITY
- A term
that describes how readily assets can be converted into cash.
LIQUIDITY
ORDER -
Listing assets in the order of converting them into cash.
LOAN
- Money lent
at interest.
LOAN
MARGIN - The
percentage of the total value of the asset being financed (such as
accounts
receivable, inventory or a fixed asset) for which the bank will lend
you
money.
LOCKBOX
- A post office
box operated in your name by bank, to which your customers
send their
payment cheques.
This allows the bank to process cheques without delay.
LONG-TERM
LIABILITIES
- The amounts owed which will not be payable within one year, such as
mortgages
and long-term loans.
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