Small Business Encyclopedia
Letter: L
Labor Laws
Laws that define the rights of employees in the United States and protect them from employer retaliation for exercising those legal rights or reporting violations to the proper authorities.
Last In, First Out (LIFO)
An accounting method for inventory and cost of sales in which the last items produced or purchased are assumed to be sold first; allows business owner to value inventory at the less expensive cost of the older inventory; typically used during times of high inflation
Lawsuit
A civil action brought in court of law in which a plaintiff seeks a legal remedy, such as damages
Leased Employees
Workers who are officially employed by a professional employer organization, which is responsible for overseeing all HR-related functions, but who actually perform all work for your company
Leases, Rental
An agreement between a landlord and a tenant that gives the tenant the right to use and occupy rental property for a period of time
Liability
Anything for which a company is legally bound or obligated, as to make good any loss or damage that occurs in a transaction
Liability Insurance
Insurance coverage that protects against claims against the insurance holder of property damage, personal injury, negligence and so on
Licensing
A business arrangement in which one company gives another company permission to manufacture its product for a specified payment
Life Insurance
An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured
Limited Liability Company
A form of business organization with the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership
Limited Liability Partnership
A business organization that allows limited partners to enjoy limited personal liability while general partners have unlimited personal liability
Link Exchange
The practice of exchanging links with other websites. You place another site's link on your site, usually on a links page, and in return, the other site places a link on their site back to you.
Loans
Money borrowed that is usually repaid with interest
Location
The physical space where your business exists
Logo
A recognizable graphic design element, often including a name, symbol or trademark, representing an organization or product
LowDoc
A special SBA 7(a) loan promising quick processing for amounts less than $150,000
