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

Category: L

LIFETIME VALUE OF A CUSTOMER

Estimated total profit, or loss, resulting over the life an ongoing business relationship with a customer. Comparatively higher value from marketing expenditure and/or salesperson compensation justify a high lifetime return on goods

LIMIT OF LIABILITY RULE

For the several insurers covering the same property with a severe loss, this is a method of apportioning that a loss.

LINE LIMIT

The maximum amount of insurance a company can write without seeking a reinsurer.

LINEAR RELATIONSHIP

A Statistical term. Defines the relationship of direct proportionality between two variables, expressed by a linear functions, graph plots a straight line, when one variable changes the other variable must change in

LIQUIDITY SQUEEZE

Lending institutions’ reluctance to loan reserve money based on short-term money-availability concerns. This makes it more expensive for banks to borrow funds from each other as interbank market interest rates increase placing

LITTER

Solid waste lost to waste handling system, discarded carelessly, becoming uncollectible.

LOAD SHIFTING

Moving demand from daily peak hours to off-peak hours. A load management technique.

LOCK-IN PERIOD

1. To generate a certain minimum return on the monies loaned, to cover the lender’s marketing and loan administration expenses, this is a period when loan full-payoff is not allowed without penalties,

LOGISTICS CHANNEL

Receiving, handling, storage, transportation, and communications functions as the focus of all networked participants in a supply chain.

LONG COUPON

On a bond, a longer period is covered by this specific interest payment than other coupons. The first interest installment is typically associated with a long coupon.

LONG TERM INVESTMENT

Bond, debenture, preferred stock/preference shares that mature in 10 years or more as an investment instrument.

LOOSE MONETARY POLICY

The government’s or central bank’s monetary policy and how the nation’s money supply is managed. It occurs by expanding the money supply and encouraging citizens and economic growth with easy access to

LOSS EXPECTANCY

Maximum loss estimate most likely due as an exposure. the insured takes special attention to loss prevention measures.

LOT QUANTITY

For a lot: Defined quantity; item count. Another name for lot size.

LOWERCASE

Alphabet’s uncapitalized letters. Found in printing establishments that utilize handset foundry type, it is generally stored in the lower part of a type-composer’s job case. This is the source of its name.

LADDERED PORTFOLIO

Organized, arranged, steady income-producing investment portfolio. Bonds with different maturities spread the investment amount to hedge and minimize interest rate fluctuation impacts. Equal amounts of money buys bonds due to mature in

LANDLOCKED STATE

Condition of acreage having no direct access to the sea, being totally surrounded by other unique land areas. An example is Switzerland.

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