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Lien: the right to keep possession of a property until the debt due in respect of it has been paid.

Limited Company (Ltd): a company whose liability is limited to its share capital.

Limited by Guarantee: a company where the liability of the members is limited, usually to £1. They are usually for charitable purposes or clubs.

Limited Liability Partnership: a special type of partnership regulated by the Limited Liability Partnership Act 2000.

Liquidation: the process of turning all of a company´s assets into cash, usually done in order to pay off liabilities.

Liquidator: the official responsible for paying off the debts of a company.

Liquidity Ratio: current Assets, less Stock, divided by Current Liabilities. Because stock, which can be hard to liquidate or overstated in the accounts, is removed from the equation this is a more testing index than Current Ratio.