A letter of credit is commercial tool through which a bank or other financial institution instructs a suitable institution to advance a specified sum of money to the bearer. It is primarily used by importers to offer secure financing to exporters. The letter of credit refers to the document representing the goods, not the goods themselves. It is called a circular letter of credit when it is not addressed to any particular corresponding institution.

Leasing involves temporary grants of the right to possess, use, and occupy real estate or PERSONAL PROPERTY in exchange for rent or other payments. Leasing is a widespread business and consumer practice. Apartments, automobiles, trucks, equipment, facilities, mining claims, and many other forms of property are leased.

Although it is difficult to agree on a precise definition of leadership, it can be described as the process of influencing people to direct their efforts toward the achievement of some particular goal or goals. Good leaders encourage people to perform at higher levels and to achieve their goals, whereas ineffective leadership can contribute to lackluster performance.

A layoff is the reduction in the number of workers due to changes in DEMAND for the firm’s PRODUCTs or changes in MANAGEMENT strategy but not due to cause. Layoffs can be temporary or permanent. Historically they were most often associated with changes in BUSINESS CYCLES. As the economy grew, so did EMPLOYMENT; but as the economy declined, workers would be laid off.

The Landrum-Griffin Act, officially titled the Labor Management Reporting and Disclosure Act (1959), created a “bill of rights” for UNION members, including freedom of speech, secret elections, and fiduciary reporting requirements for union officials.

Labor markets are markets where workers are the source of SUPPLY and employers are the source of DEMAND. Labor is one category of RESOURCES. Along with CAPITAL and natural resources, labor is necessary to produce goods and SERVICES. Employers hire workers based on the expected output and revenue they will generate.

In the United States, the labor force (or workforce) is defined as individuals age 16 or older who either have jobs or can work and are looking for jobs. People under 16 are not considered part of the workforce, even though many young people in the United States work. Another way of defining the labor force is the sum of people employed plus the number of unemployed.

Employee relations is concerned with assuring that each employee is treated fairly and that concerns and problems are addressed quickly. Employees are encouraged to discuss their concerns with either their supervisor or a HUMAN RESOURCES representative.

The Kyoto Protocol is a treaty intended to reduce the impact of human activity on the earth’s environment. The focus of the treaty is global warming, but it also contains goals to reduce poverty and shepherd water RESOURCES. It is also called the Kyoto Accord or the Climate Change Treaty.

Kondratev waves are 50-year periods of expansion and contraction in Western countries during the period from 1790 to 1940. These long-term business cycles were first observed and analyzed by the Russian economist and statistician Nikolay Kondratev.

Knowledge management (KM) is a business activity through which organizations generate value utilizing their explicit and tacit intellectual assets. This is accomplished through the dissemination and utilization of knowledge. The practice of KM involves combining explicit assets (information technologies) with tacit assets (competencies and experiences possessed by employees).

Know-how is valuable business knowledge; it may or may not be a trade secret, and may or may not be patentable. Know-how often refers to technical, scientific, or engineering fields. An engineer who specialized in industrial coatings once said, “I am more than willing to show my ideas and inventions to potential partners and investors.

Keynesian (pronounced Canes-e-an) economics refers to the macroeconomic theories of John Maynard Keynes (1883–1946), considered by many to be the greatest economist of the 20th century. Lord Keynes, knighted for his work on behalf of Great Britain, developed much of the framework of modern macroeconomic theory.

A Keogh plan is a tax-deferred savings vehicle serving as a RETIREMENT PLAN for unincorporated businesses, usually small businesses or people who are self-employed. Keogh plans (which are also sometimes called “qualified plans” or “H.R. 10” plans) were named after New York Representative Eugene James Keogh and were first introduced in the 1960s.

Just cause is the dismissal or termination of an employee with good reason. Just-cause dismissal (also referred to as sufficient cause) can be based on any of four reasons: unsatisfactory performance, lack of qualifications, changed requirements for the job, or misconduct.

The Jones Act (officially named the Merchant Marine Act of 1920) and related statutes require that vessels used to transport passengers and cargo between U.S. ports be owned by U.S. citizens, built in U.S. shipyards, and manned by crews of U.S. citizens. According to the wording of the act, its purpose “is to maintain reliable domestic shipping services and to ensure the existence of a domestic maritime industry available and subject to national control in time of need.”

A joint venture is the combined effort of two or more business entities for a limited purpose. Joint ventures are frequently established for coordinated research, international expansion, and specialized PRODUCTION. Creating a joint venture involves both legal and strategic MANAGEMENT implications.

Job satisfaction has to do with employees’ attitudes towards and liking for their work. Measures of job satisfaction are often used to predict how long employees will continue working for a particular company, as well as their level of ORGANIZATIONAL COMMITMENT. Variables affecting job satisfaction typically include both organizational and personal factors.

The International Organization for Standardization (ISO) is a nongovernmental worldwide federation whose mission is to promote the development of standardization (have weights, measures, etc., conform to a standard). The ISO believes standardization facilitates the international exchange of goods and SERVICES; its efforts result in international agreements reducing or eliminating technical barriers to global trade.

Investment clubs are a popular way for Americans to learn about and become involved in STOCK MARKET investing. In an investment club, members agree to contribute a set amount of MONEY each month, often $50; review and evaluate stock choices; and make INVESTMENT decisions based on member voting.

Investment banking, also called I-banking, refers to the financial services provided by investment bankers. Until 1933, commercial banks participated in activities that are now purely investment-banking activities, such as UNDERWRITING.

Investment can refer to either economic investment or financial investment. Economic investment is the purchase of new productive ASSETS—buildings, equipment, computers, etc.—that are used to produce goods and SERVICES. Financial investment is the use of CAPITAL (MONEY) to generate hoped-for PROFITS. Financial investment includes the purchase of shares of stock in a company, other securities, or assets with the goal of selling them at a higher price.