Homonym: liability (Responsibility)
Liability refers to the legal responsibility that a person or organization has for their actions or decisions. If someone causes harm or damage, they may be held liable, meaning they could be required to pay for the losses incurred. For example, if a driver causes an accident, they may be liable for the medical expenses of the injured party.
In business, liability can also refer to debts or obligations that a company owes to others. This includes loans, unpaid bills, and other financial commitments. Understanding liability is crucial for both individuals and businesses to manage risks and protect their assets effectively.