MANAGEMENT

Detailed explanation-1: -A legal liability is a commitment imposed on a party as the result of a contract or civil action. A legal liability may be covered by insurance. It may also be voided by the legal structure of a business; thus, the legal liabilities of a corporation do not extend to its shareholders.

Detailed explanation-2: -A measure of mental capacity, used in deciding the extent to which a person can be held accountable for a crime; see diminished responsibility. Specific duties imposed upon persons to care or provide for others, such as the parents’ duty to the child or the guardianship of a ward.

Detailed explanation-3: -responsibility that someone has for their actions, for example the responsibility to pay another person for harm or damage that is a result of these actions: Failure to comply with the latest regulations could result in legal liability if patient health is affected.

Detailed explanation-4: -Liability can also mean a legal or regulatory risk or obligation. In accounting, companies book liabilities in opposition to assets. Current liabilities are a company’s short-term financial obligations that are due within one year or a normal operating cycle (e.g. accounts payable).

Detailed explanation-5: -Corporate liability, also referred to as liability of legal persons, determines the extent to which a company as a legal person can be held liable for the acts and omissions of the natural persons it employs and, in some legal systems, for those of other associates and business partners.