Liability
A financial obligation, or the cash outlay that must be made at a specific time to satisfy the contractual terms of such an obligation. |
Similar financial terms
Unlimited liabilityFull liability for the debt and other obligations of a legal entity. Generally, partners of a partnership and sole propietors have unlimited liability.
Limited-liability instrument
A security, such as a call option, in which the owner can only lose his initial investment.
Limited liability
Limitation of possible loss to what has already been invested.
Liability swap
An interest rate swap used to alter the cash flow characteristics of an institution's liabilities so as to provide a better match with its assets.
Liability funding strategies
Investment strategies that select assets so that cash flows will equal or exceed the client's obligations.
Contingent pension liability
Under ERISA, the firm is liable to the plan participants for up to 39% of the net worth of the firm.
Limited Liability Company (LLC)
Consists of member owners and a manager, at a minimum. Similar to a corporation that is taxed as a partnership or as an S-corporation. More specifically, it combines the more favorable characteristics of a corporation and a partnership. The LLC structure permits the complete pass-through of tax advantages and operational flexibility found in a partnership, operating in a corporate-style structure, with limited liability as provided by the state's laws.
Limited liability partnership (LLP)
A form of the LLC favored and used for professional associations, such as accountants and attorneys.
Limited liability limited partnership (LLLP)
Intended to protect the general partners from liability. Previously, the general partner was a corporation to protect the principals from personal liability. Under the LLLP, an individual could be a general partner and have limited personal liability.
