ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Generally, individuals are considered separate from the corporations they control. So, if a corporation fails to pay a debt, the corporation itself is liable, and not its individual owners or operators.

Detailed explanation-2: -Liabilities are obligations your company incurs. Your company’s liabilities may be finance-related, accounting-related or legal. Financial liabilities typically involve a claim, such as a lien or promissory note, against your company’s assets. Accounting liabilities are generally those that appear on the balance sheet.

Detailed explanation-3: -Liability Risk is a type of Operational Risk specifically the risk of being held liable or responsible for an action or inaction, whether or not at fault, resulting in a direct or indirect financial loss.

Detailed explanation-4: -Owner liability means the liability of a shareholder, member, trustee, partner, limited partner or other owner of an organization for debts of the organization, including the responsibility to make additional capital contributions to cover such debts.