Liabilities
ˌlaɪəˈbɪlətiz
Definitions
2 meaningsThe state of being responsible for something, especially by law; a debt or obligation.
ˌlaɪəˈbɪlətiz
Financial obligations
The company's liabilities include loans and accounts payable.
💡 Simply: Imagine you borrowed money from your friend to buy a toy, that money you owe is a liability. Businesses also have liabilities like money they owe to others or bills they need to pay.
👶 For kids: When you owe something to someone, like money or help, that's a liability!
More Examples
Unpaid taxes are a significant liability for many businesses.
The bank assessed the company's liabilities before approving the loan.
How It's Used
"The company's liabilities exceeded its assets."
"Short-term liabilities must be paid within a year."
A disadvantage or handicap.
ˌlaɪəˈbɪlətiz
Something that causes a disadvantage
The slow internet connection was a major liability for the online conference.
💡 Simply: If something makes it harder for you to do something, like if you're not good at sports and that makes it harder for you to play on a team, that's a liability.
👶 For kids: Something that makes it hard for you to do something, like being really clumsy!
More Examples
A lack of proper training posed a significant safety liability.
His temper was seen as a liability by his colleagues.
How It's Used
"His lack of experience was a liability in the job search."
"The company's old machinery presented a safety liability."
Synonyms & Antonyms
From Middle English *liabilite*, from Old French *liabilité*, from *liable* ('liable'). The term evolved from legal and financial contexts.
Historically used in legal and financial texts to denote debts and obligations, the term broadened to include any disadvantage later.
Memory tip
Think of a *lie* that *ability* to manage finances creates – it's a *liability* if it's a debt.
Word Origin
"to bind, to be obliged"