I am looking for the legal definition of business liability? A link to a site that says this would be helpful. Not looking for insurance information though, just a definition of what business liability is.
2007-10-01 11:03:51 · 2 answers · asked by krisi 2 in Business & Finance ➔ Other - Business & Finance
A business liability is something, anything, an organisation owes anyone arising from the normal course of business. Examples are debts due to suppliers for goods or services received, due to lenders for loans obtained, due to staff for hours worked, due to the IRS for profit made. These examples are real liabilities. There can also be contingent liabilities. For e.g. your store has ceiling to floor glass walls with no markings on them and a customer walks through one and injures himself and sues the co. That is also a business liability. Another e.g. is if your co. sells food and customers get food poisoning from eating it and sues the co. That is why companies need to take out business liability insurance.
2007-10-01 16:33:47 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
liability is about the responsibility that an individual has for the fianacial debts of the company. For unlimited liability companies (sole trader and partnerships) the owner can be expected to take full responsibility of any debts the business incurs. For limited liability this means that the individual is only responsible for the share of the business they own. This is usually limited by the value of their shareholding. This is particularly relevant when considering the financial risk of personal investments into a company
2007-10-01 11:41:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋