The use of borrowed money to increase the return on investment. For leverage to be positive, the rate of return on the investment must be higher than the cost of the money borrowed. The acquisition of a company financed primarily with borrowed money using the acquired company's assets to collateralize the loan. Insurance covering the risks related to the property and personal liability claims of other parties against the insured party. A legal hold or claim of a creditor on the property of another as security for a debt.
Liens are always against property, usually real property.
A tax term applying to the exchange of business or investment properties. Taxes on an exchange may be postponed for like-kind properties. A form of business ownership that consists of one or more general partners who are fully liable and one or more limited partners who are liable only for the amount of their investment. An agreement by a commercial bank or other financial institution to extend credit up to a cer-tain amount for a certain time to a specific borrower. The ability to readily convert assets or investments to cash.