Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of ...

Learn what a contra liability account is, how it functions in financial accounting, and explore examples of this essential component in balancing liabilities.

A liability is a financial obligation or debt owed. Liabilities are key elements on every company’s balance sheet, and therefore, important to stock and bond investors. Learn more. In finance and ...

A sole proprietorship is a business entity where all liabilities and financial obligations pass to the single owner of the business. Those choosing a sole proprietorship are usually in low-liability ...

What would happen if your business was sued? You damage a client's property, one of your employees is injured on the job, a customer slips and falls in your store—that's all it takes. And then what?