Types of liability in business

Liability is a claim of company assets.

Liability in business include loans borrowed by business from financial institution's.It also include goods and services delivered to the business through credit.The business has to pay the loans which has been borrowed and also the business has to pay the goods and services purchased through credit.In these case,the business has incur liability.

There are two types of liability:

Short Term Liability
Short term liability is liability which is to be paid for a period not exceeding one year.

Long Term Liability
Long term liability is liability which is to be paid for periods
exceeding one year.

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