Debts you owe that aren’t due for over a year. That’s the traditional company accounting definition. Short-term liabilities come due in a year or less. But the term is kinda edgier than this. That is, a company that is beginning to cut costs in its call centers, moving more and more service to robots before the robots are really ready...or moving things overseas to operators who don’t speak the relevant language well enough…is creating a long-term liability in the form of its own brand equity destruction.
That long-term liability is the viability of the growth of the company. Liabilities come in many flavors, and you don’t want them. See: Kodak for details. It used to be one of the great companies in America; the long-term liability was a consumer shift to digital photography. Kodak could have been Canon or Nikon or even Apple, but they cut costs when they should have invested, and now they’re pretty much dead meat. Oh so not a Kodak Moment.
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Finance: What is liability?3 Views
Finance allah shmoop What is a liability What is it
it's what you owe you bought four million gumballs on
credit for your party pack for the parade the money
is owed to gumballs are us in ninety days that's
a short term liability Alright next example you borrowed eighty
three million dollars to set up your new do dental
drive through service and that money is due in twelve
years at seven percent interest a year that's A long
term liability Why long term Because it comes due in
over a year and that's basically it liability comes in
two flavors short and long term and it's one of
the key elements of the balance sheet as it lives
in this space ride over here So yeah that's a
liability all this crap time now considering how many gumballs
you've consumed in the past month you really should get
yourself to a good drive through dentist or maybe sleep 00:00:56.998 --> [endTime] in mr
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