The term "literature review" can mean different things in different contexts. All share in common the idea of examining the scholarly literature on a topic. It is the end result that differs:
An Annotated Bibliography is "a bibliography that includes brief explanations or notes for each reference" (from Dictionary.com) The notes may be evaluative or simply a summary.
A literature review can be free-standing article. "A review article or review of the literature article considers the state and progress of current literature on a given topic or problem by organizing, integrating, and evaluating previously published books and articles. In short, a review article is a critical evaluation of material that has already been published." (Writing Literature Reviews) "The purpose is to offer an overview of significant literature published on a topic." (Write a Literature Review)
A literature review is a vital part of research papers including theses and dissertations. "Surveying the literature is necessary because scholarship is cumulative -- no matter what you write, you are standing on someone else's shoulders. Scholars must say something new while connecting what they say to what has already been said." (Writing Literature Reviews);
Below are some useful links for writing a literature review.
Literature Review: A Few Tips on Conducting It - University of Toronto
Courtesy of the University of North Carolina State University Libraries
Kysh, Lynn (2013): Difference between a systematic review and a literature review. [figshare]. Available at: http://dx.doi.org/10.6084/m9.figshare.766364