BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Liabilities are the legal debts a company owes to third-party creditors. They can include accounts payable, notes payable and bank debt. All businesses must take on liabilities in order to operate and grow. A proper balance of liabilities and equity provides a stable foundation for a company.

Detailed explanation-2: -Liabilities are debts or other obligations in which your business owes money, now or in the future. Assets are items of value that your business owns, such as real estate and equipment. Assets and liabilities are part of a business’s balance sheet and are used to judge the business’s financial health.

Detailed explanation-3: -Comparing Liabilities and Debt The main difference between liability and debt is that liabilities encompass all of one’s financial obligations, while debt is only those obligations associated with outstanding loans. Thus, debt is a subset of liabilities.

Detailed explanation-4: -Liabilities can be classified into three categories: current, non-current and contingent.