liability

liability definition - business

liability

  1. An obligation to pay to another party an amount in money, goods, or services. The balance sheet of a business lists its liabilities. Also called debt. Compare asset. See also contingent liability, current liability.
  2. An obligation or duty to perform some act. For example, a new employee has a liability to his or her employer.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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