Definition
Liabilities are financial obligations or debts owed by an individual, company, or organization to external parties. Liabilities represent the claims that creditors have on a company's assets and are settled through the transfer of economic benefits such as cash, goods, or services. Liabilities can include accounts payable, loans, bonds, mortgages, deferred revenue, and other obligations that require future payments or performance. On a balance sheet, liabilities are typically categorized as current liabilities (those due within one year) or non-current liabilities (those due beyond one year).
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.