unlimited liability

  

Definition

Indefinite extent of liability to pay a firm's debts or obligations, extending beyond the investments of the firm's owner(s), partners, or shareholder(s) to their personal assets. This extent of liability is assumed in an unlimited liability company such as a sole-proprietorship or a general partnership.

Use unlimited liability in a sentence

  • The firm would have unlimited liability and would have to pay back the debt at some point in the future.

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  • The unlimited liability of the firm was discussed in detail at the meeting and it was determined to be a sub optimal arrangement.

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  • If you have unlimited liability you must be careful how deep you get or you may never be able to get out.

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