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limited liability&no liabily

What is the difference between the expressions “limited liability” and “no liability‘’?

1 Answer

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  • 1 decade ago
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    My suggestion is as follows:

    In accounting, “liability” means anything that a person owes to someone. In Chinese, it’s「負債 / 債務」.

    “Limited” is an adjective (形容詞) which describes something that is not infinite. Things in a limited scope are within border and with restricted content. It’s 「有限 / 有限制的」in Chinese.

    “Limited liability” & “no liability” are used in accounting. They are usually relevant to a business formed by partnership. A partner with “limited liability” means “when a business needs to pay for its liability, the partner should be responsible for the amount which is equal to or less than the amount he/she has invested in the business. The amount he/she pays is finite. At the same time, the other amount is totally not relevant to him/her.” Therefore, it’s 「有限債償」。

    A person with “no liability” means “he/she bears no responsibility for paying the amount owed”. It’s 「無責任債償」.

    Source(s): My View
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