define: internal and external liability

Share with your friends

Share 0

Ranu Panchal answered this

internal liability mens responsibility towards producer.

external liability means responsibility towards outsiders means taking loan from bank.

View Full Answer

Pragya Nyati answered this

Internal liability means liability towards the owner if the business...
External liability means liability towards outsiders other than owner

Aishwarya Shrivastava answered this

External liability means liability towards the owner i.e., capital. Internal liability means liability on creditors i.e., outsiders other than owner eg., bank loans, creditors,etc

-1

Aishwarya Shrivastava answered this

Sorry i wrote the opposite second one is external and first is internal SORRY AGAIN

-1

Renu Shekhawat answered this

Internal liability means loan taken within the firm (ex.partner or member of firm) and external liability means loan taken frkm outside the firm (ex.a person who is not a part of the firm)

Shafaq Tariq answered this

All amount which a business entity has to pay to the proprietor or owner is called internal liability.example-capital All amount which a business entity has to pay to the outsiders is called external liability. Example -loan

Paras Gupta answered this

Internal Liability ? All obligations which a business has to pay back to internal parties. Such as promotes (owners), employees etc. are termed as internal Liability

External Liability ? All obligations which a business has to pay to external parties. Such as lenders , vendors etc. are termed as external liabilities