What is a liability?

Finance: A claim against the assets, or legal obligations of a person or organization, arising out ...

	Friday, March 27, 2015 liability   Term of the Day liability 1. Finance: A claim against the assets, or legal obligations of a person or organization, arising out of past or current transactions or actions. Liabilities require mandatory transfer of assets, or provision of services, at specified dates or in determinable future. 2. Accounting: accounts and wages payable, accrued rent and taxes, trade debt, and short and long-term loans. owners' equity ... Learn more about this term Usage Example But time and effort involved in setting up a business structure with less liability can be costly, as well.   Friday Quiz Challenge Test your knowledge of this week's terms Question: The cash available for day-to-day operations of an organization. Strictly speaking, one borrows cash (and not working capital) to be able to buy assets or to pay for obligations. Choose the Right Answer: (A) working capital (B) competition (C) intranet (D) litigation   Featured Article Where Do I Begin? Preliminary Steps for Starting a Business Once you have decided to start your own business you have to figure out where to begin! There are many steps to successfully starting a business, and it can be ... Read this article   Voice Your Opinion What's something money can't buy?   Take us with you! Download the BusinessDictionary app today.
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