Definition

Noun (plural form of liability) 1. Financial Obligations: The total amount of money or debts that a person or company owes to others. This is the primary meaning in business and accounting. 2. Responsibilities or Disadvantages: Things or conditions that are likely to cause problems or put someone at a disadvantage.

Usage

The word "liabilities" is almost always used in its plural form. It is a formal term most common in financial, legal, and business contexts. It refers to collective debts or burdens.

Examples

• Financial Obligations:
  • The company's liabilities exceeded its assets, leading to bankruptcy.
  • When applying for a loan, you must list all your assets and liabilities.
• Responsibilities or Disadvantages:
  • His lack of experience was seen as a major liability for the team. (Here, the singular form liability is used for a single disadvantage.)
  • The old factory, with its high maintenance costs, became a significant liability.

Advanced Usage

• "Current liabilities": Short-term financial debts that are due within one year (e.g., accounts payable, short-term loans).
• "Long-term liabilities": Debts or obligations that are due in more than one year (e.g., mortgages, bonds payable).
• "To be more of a liability than an asset": An idiom meaning someone or something causes more problems or costs than the benefits they provide.

Variants and Related Words

• Liability (noun, singular): 1. The state of being legally responsible for something. 2. A person or thing that is a disadvantage.
  • Example: The driver admitted liability for the accident.
• Liable (adjective): 1. Legally responsible. 2. Likely to do or experience something undesirable.
  • Example: Owners are liable for any damage caused by their pets.

Synonyms

• Debts: Sums of money owed.
• Obligations: Duties or commitments, often financial or legal.
• Responsibilities: Things one is required to do or account for.
• Encumbrances: Burdens or hindrances.

Antonyms

• Assets: Items of value owned by a person or company.
• Resources: Assets that can be used for support or help.
• Advantages: Conditions that put one in a favorable position.

Noun

1. anything that is owed to someone else