Glossary: L

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Liability

A liability is a financial obligation a business owes to others, from supplier bills and loans to taxes payable and defe…

Lifetime Capital Gains Exemption (LCGE)

The lifetime capital gains exemption shelters a large amount of capital gain, over $1.25 million, on the sale of qualify…

Line of Credit

A line of credit is a flexible loan that lets a business borrow up to a set limit as needed, repay, and re-borrow, payin…

Liquidity

Liquidity is how easily a business can meet its short-term obligations and convert assets to cash without loss, a core m…

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