Business Terms and Definitions (L)
Lagging Indicator: An economic indicator that appears after a trend has begun or lags behind a current business cycle. Lagging indicators include changes in labor costs, the average prime rate charged by banks, the average duration of unemployment, the ratio of consumer installment credit to personal income, change in labor per unit of output, and other trends.
Landlord: The person or agency that rents or leases an apartment, house, condominium, factory, or commercial building to another. A landlord has legal responsibilities concerning tenants rights and specified duties that are prescribed by law.
Late Fee: A penalty charged for not making installment payments on time, usually after a grace period has expired. Late fees are calculated as a percentage of the outstanding balance that is due.
Lawsuit: A legal procedure that is started by a party or parties to rectify an injustice. Lawsuits are filed to halt a nuisance, get monetary damages, or to enforce a contract.
Lawyer: An individual who, by law, can represent another in legal matters. Lawyers are required to observe professional codes of conduct that are established and enforced by the highest courts in the state in which they practice law.
Leading Indicator: The most common series of economic indicators that are used to anticipate changes in the business cycle. The leading indicator forecasts changes in employment statistics, the money supply, new investments, corporate profits, business startups and failures, and other economic forces.
Lease: A contractual agreement between two parties, the owner (lessor) of a property or equipment and a renter (lessee) granting the lessee the rights of possession and usage for a specified time and rental payment.
Lease-Back: An arrangement in which a property is sold and then leased back to the seller who takes on the rights of usage.
Legal Opinion: An opinion by an attorney or other legal counsel that is attached to municipal bond certificates attesting to the fact that the bond is exempt from taxation and any other impending impact on the bond holders.
Legal Tender: Forms of circulating notes (money) that is recognized as acceptable payment for products, services, and debts.
Lien: A claim levied against property for security against a debt and gives the lien holder the rights to collect payment through legal means.
Limited Partnership: A limited partnership is a business venture in which an individual participates as a minority investor who receives a share of it's profits, and it's losses, but has no role in managing the enterprise and has limited liability.
Line Of Credit: A commitment by a bank or other lending institution to loan funds, up to a specific amount, to a borrower for a specified period of time. A line of credit is reviewed annually and do not require fees or compensating balances unless guaranteed by the lender.
Liquid Asset: The actual money, or any asset that can be readily converted to cash. Liquidity is the ability to meet the needs of those who want to withdraw cash from an account or other vehicle.
Loan Documents: Documents required to process a loan contract. Loan documents include details of credit worthiness, financial statements, the security interest of the lender, and all other important documentation required to fund the loan.
Loan Lock-in Period: A length of time that a lender agrees to hold a specified mortgage interest rate and points as quoted when the loan application was taken, usually 30 to 60 days.
Lump Sum Distribution: The single payment to a beneficiary of an account rather than the making of scheduled payments at regular intervals over time.
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