Dictionary of Procurement Terms

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Search Results: 51-60 of 88 results for “L”

  • Limited Liability Company (LLC)

    A form of business ownership that provides limited liability and taxation like a partnership, but places fewer restrictions on shareholders. (Ferrell & Hirt, 2002)

  • Limited Warranty

    A written guarantee with respect to a product or service that specifically restricts the conditions under which that guarantee will be honored.

  • Line and Staff

    An organizational structure having a traditional line relationship between superiors and subordinates and also specialized managers, called staff managers, who are available to assist line managers. (Ferrell & Hirt, 2002)

  • Line Function

    One of the three identified functions of a procurement department. This function includes its own authorized work to issue bids, Requests for Proposals, and contracts with suppliers to obtain the necessary materials and services in support of agency operations.

    See Also: Service Function, Staff Function

  • Line Item

    An item of supply or service, specified in an Invitation for Bids or Request for Proposals, for which the bidder must bid a separate price.

  • Line Item Budget

    Fixed budgets with monies appropriated for a particular period, usually one year, that can be tied to a specific project or item. This money is specifically allocated to that project or item and cannot be spent on other uses. They are easy to understand and are designed to maximize control and ensure financial accountability.

  • Line Object

    CANADIAN A departmental classification of expenditure at the source. It is either coincident with the economic object or represents a subdivision of it.

  • Line of Credit

    An arrangement by which a bank or lending institution agrees to lend a specified amount of money to an organization upon authorized request. Assures that cash will be available to meet day-to-day business expenses. (Ferrell & Hirt, 2002)

  • Liquidated Damages

    Damages paid, usually in the form of a monetary payment, agreed to by the parties to a contract, that are due and payable as damages by the party who breaches all or part of the contract. May be applied on a daily basis for as long as the breach is in effect. May not be imposed as an arbitrary penalty. The key to establishing liquidated damages is reasonableness. It is incumbent upon the buyer to demonstrate, through quantifiable means, that damages did exist.

    See Also: Penalty Charge, Damages

  • Liquidation

    A process in which a company ceases to be a legal entity, usually because it is insolvent. The company’s assets are then sold by a liquidator to discharge debts. (Business, 2002)

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