The Lorenz curve, named after statistician Max Otto Lorenz, shows the portion of total money INCOME accounted for by different proportions of the nation�s households. The Lorenz curve displays the cumulative percentage of households on the horizontal axis and cumulative percentage of household income on the vertical axis.

See BUSINESS LOGISTICS.

A local option sales tax (LOST) is an addition to an existing sales tax made by a local government or municipality for a specific purpose. Local option sales taxes, usually ranging from 0.5 to 1.5 percent, are enacted to pay for special projects, typically things like roads, bridges, and schools.

Loans are generally represented by PROMISSORY NOTES (unconditional promises to pay). Loans may be for the long term (maturities greater than one year) or short term (less than one year) and may be secured (backed by collateral, ASSETS pledged to lessen the loan�s RISK) or unsecured (such as a signature loan).

A limited liability partnership (LLP) is a form of business where partners retain individual liability but have no LIABILITY for most LLP obligations. An LLP is similar to a PARTNERSHIP except for the LLP�s lack of liability. LLPs are used by many professional groups as a means of maintaining a partnership while not being liable for each partner�s actions.

A limited liability company (LLC) is a business form that combines some of the advantages of the corporate business form with the favorable tax treatment of business PARTNERSHIPs. Like a CORPORATION, a limited liability company is a legal entity existing separately from its owners, creating limits to their LIABILITY. Owners of LLCs, called members, have no personal liability for LLC obligations.

According to Webster�s New World Dictionary, life cycle is �the series of changes in form undergone by an organism in development from its earliest stage to the recurrence of the same stage in the next generation.� In business, life cycle is the series of stages individuals, products, and organizations go through from the beginning to the end of its existence.

Licensing is an agreement offering the right to use a manufacturer�s process, trademark, patent, or trade secret by a Licensee in a foreign market. Licensing arrangements are often considered in a company�s international expansion efforts, since it offers the opportunity to generate royalties without INVESTMENT in resources or the assumption of RISK associated with market development.

Liability is the status of being responsible or obligated under the law. Persons and businesses can be subject to both civil (private) and criminal liability. Liability can be �joint and several� with each liable party individually responsible for the entire legal obligation; and �derivative� or �vicarious� acts involving other persons and businesses, such as when an agent acts on behalf of another or an employee acts on behalf of an employer.

A leveraged buyout (LBO) is the takeover of a company using borrowed funds. In an LBO, the ASSETS of the company being acquired are used as collateral to secure LOANS needed to finance the company�s purchase. The takeover company or group then repays the loans using the PROFITs from the company being acquired or by selling off part or all of the assets of the targeted company.