LAN – a local area network is a group of computers communicating over a short distance to one another. Many LANs have connections to larger networks (see ‘WAN’).

Lean – a system to understand customer value and continually working to increase it with less resources.

Lean manufacturing / lean production – a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. 

Lease – a legal contract covering the possession and use of property, plant or equipment between the owner (lessor) and another person (lessee) at an agreed rent and for a stated period of time.

Leasing finance – a method of acquiring business equipment without capital outlay. The bank or finance company buys the equipment and leases it to the customer, in return for regular rental payments for the duration of the lease period.

Legislation – all current laws, as passed by the Parliament of a state, territory or the Federal Government.

Lessee – a person who enters into a lease contract as the user of the land, buildings, plant or equipment.

Lessor – an owner who allows his/her land, buildings, plant or equipment to be used under a lease contract.

Likelihood (AS/NZS 4360) (Risk Management) – How likely an event is to occur, or the frequency with which an event may occur (Note: Likelihood can be expressed qualitatively or quantitatively.)

Limited partnership – a legal partnership where some owners assume limited responsibility up to the amount invested.

Liquidate – to settle a debt or to convert to cash. This literally means to do away with.

Liquidator – a qualified person appointed by a court to wind up a company, realise and distribute its assets in payment of all or some of its liabilities.

Liquidity – cash or assets that can readily be converted into cash.

Liquidity ratio – the ratio of current assets divided by current liabilities.

Loan – money loaned at an agreed rate of interest and for a fixed period.

Loss (AS/NZS 4360) (Risk Management) – Any negative consequence or adverse effect, financial or otherwise.

Loss of profits insurance – provides coverage for direct and indirect losses sustained to business property sustained as a result of suspending operations and to place the insured in the same position as it would have been in had no interruption in its business occurred.

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