- Liability is defined as the state of being responsible for something or something that someone is responsible for.
- An example of liability is a person having to pay back student loans.
- An example of liability is payment for a car accident.
liability definition by Webster's New World
- the state of being liable
- anything for which a person is liable
- a debt of a person or business, as a note payable or a long-term debenture
- an account on a balance sheet showing this
- something that works to one's disadvantage
liability definition by American Heritage Dictionary
noun pl. li·a·bil·i·ties
- The state of being liable.
- a. Something for which one is liable; an obligation, responsibility, or debt.b. liabilities The financial obligations entered in the balance sheet of a business enterprise.
- Something that holds one back; a handicap.
liability - Business Definition
- 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.
- An obligation or duty to perform some act. For example, a new employee has a liability to his or her employer.
liability - Cultural Definition
An obligation or debt.
liability - Investment & Finance Definition
An obligation to make a payment to a person or company in exchange for a benefit that has been received or money that has been lent. The liability section on a company’s balance sheet is one of the three major parts of the balance sheet.
liability - Legal Definition
- A legally enforceable obligation.
- More generally, a debt or other legal obligation to pay an assessed amount (for example, taxes).