noun · formal
liability
/ˌlaɪəˈbɪlɪti/li·a·BIL·i·ty
a legal responsibility for something, especially for paying money if there is a loss or damage
Examples
“Shareholders usually have limited liability, so they are not personally responsible for the company’s debts.”
“The firm disclosed all its liabilities on the balance sheet.”
“After the lawsuit, the manufacturer accepted liability for the defective product.”
Band 8 sentence
“Because the group used a holding company structure, individual investors benefited from limited liability and were shielded from the firm's operational risks.”
Collocations
- limited liability
- assume liability
- legal liability
- current liabilities
Word family
Common mistakes
He is liability for the losses.→He is liable for the losses.
The company has many liability.→The company has many liabilities.
Say it for a higher band
5debt→6responsibility→7+liability
Synonyms
debt
responsibility
Easily confused
debt
“The company repaid most of its long-term debt over the past year.”
responsibility
“Parents have a responsibility to provide for their children.”
Related words
Learn this word with the rest of its set, and get reminded at the right time.
In Shopping & Money
Learn it with its set