Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

JUSTIFICATION AND APPROVAL

Documented contracting statement detailing why a noncompetitive contract award instead of open competition was selected.

KERBEROS

User authentication scheme for Open source (non-proprietary) and public domain (free). A client-server environment’s network security system. Named after Greek mythology’s fierce three-headed guard dog. At user login and every service request,

KEY TASK ANALYSIS

Typically employed in managerial or supervisory level employee training. Determining the level of performance required, time taken, quality of outcome, and total job or project quality by the study of a set

KILLER BEES

While being overcome in a hostile bidding war, a company receives a saving grace.

KNOWLEDGE BASE

Concepts, data, objectives, requirements, rules, and specifications as an organized knowledge repository. Typically this is a computer system, less often, an organization. It can be (1) a retrieval either as an expert

LABELING

Identifying information on packaging about its contents, on a container holding several packages, or the product itself. Relevant safety and shipping laws govern the type and quantity of information that must exist

LAND CERTIFICATE

Prima facie evidence of land ownership. Similar to a deed for unregistered land. Document of title issued by a government’s land registry agency for registered free-hold or lease-hold land.

LARGE CLAIM POOLING

Claims over a specified amount are placed in a pool to help curb fluctuations in premium amounts for smaller groups, as the pool is made up of claims charged by several smaller-sized

LATE TRADING

When clients enter mutual funds after the market is closed. This is illegal.

LAW OF DIMINISHING MARGINAL UTILITY

A product’s demand by a consumer declines with each additional unit acquired or consumed. A perceived, psychological generalization on the value of, or satisfaction gained.

LAYERED TRUST

Two or more trusts in sequence where each sequential trust is the beneficiary of the prior trust.

LEADER

An entity, typically, a person, that provides direction to those who follow. Often holds a dominant or superior position within a specific field. Exerts a high degree of control or influence over

LEAPS

Refer to Long-term Equity Anticipation Security

LEGAL ACTION

Lawful pursuit for justice or decision under the law, typically leading to proceeding within the jurisdiction’s court system. An entity accuses another for a unlawful action, to protect an entity’s rights from

LEGALLY INCAPACITATED

Person unable to make rational decisions or engage in responsible actions. Mental and/or physical deficiency, disability, illness, drug use causing temporary or permanent impairment.

LETTER OF GUARANTEE

An importer self-obligates accepting a bill of exchange and, on its presentment at a certain bank, paying the stated amount, as documented in this letter. Securing that bank’s acceptance of an exporter’s

LETTERS TESTAMENTARY

Entity assignment as estate administrator or executor by this court -issued document. Necessary if no will (intestate) for the deceased’s estate. Refer to Letters of Administration.

LEVELED PRODUCTION

Constant production rate regardless of demand fluctuation. Maximum plant capacity utilization and balanced workforce size are the objectives.

LIBERTARIANISM

Political and philosophical principle and belief seeking to limit government involvement in civil economical and social matters. Issues need to be settled outside the courts. Its roots trace back to the early

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