Create install media - lion -command not found
Mac OS X Lion didn't come with the built-in ability to create a USB installer since a small USB flash drive installer came with Mac's that shipped with Mac OS X Lion and was also sold by Apple on a small USB flash drive.  It was also downloadable through the App Store.  It was the first release of Mac OS X to not come on optical media.

To create a USB Installer, from the downloaded Install Mac OS X Lion application bundle, you'll need to use a program like DiskMaker X (formerly Lion DiskMaker) 

Surly because Apple sold the Mac OS X Lion USB Installer for ~$79 USD they weren't going to make it easy for users to usurp buying the product vs. making it themselves.  That changed with OS X Mavericks, being the first OS X release to include a built-in way to create a USB Installer.

To create a USB Installer for OS X Mavericks and later, have a look at: Create a bootable installer for OS X