Business Law GLOSSARY
Glossary of Business Law Terms
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Legal Tender: All money issued by the government.
Libel: A libel case consists of published material with
the following criteria: (1) The material is defamatory; (2) the
written statements are about someone who is identifiable and living;
(3) the material is distributed to someone other than the victim. A
key in a libel case is that the victim's reputation must suffer as a
result of these written words in order for the action to be
Limited Liability: The maximum amount a person
participating in a business can lose or be charged in case of claims
against the company or its bankruptcy. A stockholder in a
corporation can only lose his/her investment.
Limited Liability Company: A new and flexible business
organization that offers the advantages of liability protection with
the simplicity of a partnership.
Limited Partnership: A special type of partnership which
is very common when people need funding for a business, or when they
are putting together an investment in a real estate development.
Liquidate: To sell the assets of a business, paying bills
and dividing the remainder among shareholders, partners or other
Liquidation Preference: Certain classes of stock (usually
preferred stock) may have a liquidation preference, which entitles
the holders to be paid first in the event of the liquidation of a
Loss of Consortium: Damages awarded to a family member
(usually a spouse) for loss of companionship.