Related Words

Liability: The debts of a person or company

Unlimited Liability: The required return on an investment when the investment is financed entirely by equity (i.e., no debt).

Limited Liability Company (LLC): LLCs are a relatively recent form of business organization. An LLC combines the most attractive features of limited partnerships and corporations. The members of an LLC enjoy the limited lia . . . View Full Definition

Retroactive Liability: A liability is not limited to the current owner of a property, but includes people who have previously owned the property.

Net Tax Liability: The amount of tax computed by subtracting tax credits from the gross tax liability.

Noncurrent Liability: A liability due in one year.

Limited Liability Company: Organizing a business enterprise as a limited liability company (LLC) under the laws of the state where it operates protects its owners or shareholders from personal responsibility for compa . . . View Full Definition

Employment Practices Liability Audit: An assessment of an employer’s current policies and practices to determine potential areas of liability (i.e., discrimination, wrongful discharge and other violations of employee rights) typ . . . View Full Definition

Liability Insurance: Insurance against legal liability to pay compensation and court costs where the insured has been found negligent in respect of injuries sustained by another person or damage to his/her property.

Joint Liability: The legal liability of two or more people for claims against or debts incurred by them jointly. If three people have joint liability and are indebted to another party, they may only be sued . . . View Full Definition