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


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


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


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.


Money borrowed that is usually repaid with interest


The physical space where your business exists


A recognizable graphic design element, often including a name, symbol or trademark, representing an organization or product


A special SBA 7(a) loan promising quick processing for amounts less than $150,000

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