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| Labour |
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| All individuals who work for a business |
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| Labour Union |
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| A group of workers who have banded together to achieve common goals, particularly in regard to wage levels and working conditions |
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| Law |
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| Standards set by government and society in the form of written legislation or unwritten customs and traditions |
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| Law of Supply and Demand |
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| An economic law stating that market price is determined by the intersection of the supply and demand curves |
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| Layoff |
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| Temporary separation due to business slowdown
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| Leadership |
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| The act of motivating or causing others to perform activities to achieve specified objectives |
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| Leadership Style |
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| The way in which a leader uses power in order to lead others |
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| Ledger |
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| A specialized accounting book containing details of items such as cash, purchases. Sales, inventory etc. |
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| Legal Capacity |
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| The ability of a party to enter into a legal agreement |
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| Leverage |
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| A technique to increase the rate of return on investment through the use of borrowed funds |
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| Liabilities |
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| Amounts listed in the balance sheet which represent payments outstanding to creditors both short and long term |
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| Limited Partnership |
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| A partnership comprising one or more general partners and one or more limited partners, who liability is limited to the amount of capital contributed to the partnership |
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| Line Manager |
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| An operations manager exercising mainline authority in areas such as production, marketing and finance |
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| Line of Credit |
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| An agreement between a commercial bank and a business organisation that states the amount of unsecured short-term credit the bank will make available to the borrower if approved |
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| Line Organisation |
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| An organisation structure of direct flow of authority from the chief executive to subordinates |
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| Liquidity |
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| The condition of a business with regard to the amount of working capital and its ability to convert assets into cash to meet short-term obligations within normal credit limits |
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| Liquidity Ratio |
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| A financial ratio, which represents the ratio of assets that may be easily exchanged for money to the total assets to determine its ability to meet its short-term obligations. The higher the percentage, the more flexible the organisation is to absorb and implement change and to survive adverse conditions. Calculation: Current Assets / Current Liabilities |
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| Local Union |
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| A branch of a national union representing its members in a specific area |
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| Lockout |
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| A management method to bring pressure on union members by closing the business |
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| Long-Term Liabilities |
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| Those liabilities in the balance sheet, of which payment arrangements extend beyond one year. |
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