Lateral thinking is a problem solving method where you attempt to solve a problem by looking at the problem from many angles instead of tackling it head-on in order to create and identify new concepts and ideas.
Letter of credit (LOC)
A form of guarantee of payment issued by a bank on behalf of a borrower that assures the payment of interest and repayment of principal on bond issues.
Leverage Ratio also known as Debt/Worth indicates the extent to which the business is reliant on debt financing (creditor money versus owner’s equity).
Calculate Leverage Ratio…
Is where individual legal entities, separate from the owners or managers. Therefore liability for debts is limited to the amount of issued share capital, whether the shares have been sold or not.
The ability of an individual or business to quickly convert assets into cash without affecting the asset’s price.
Liabilities repayable in more than one year plus equity.