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.
Related or Semi-related Video
Finance: What is Contingent Liability?4 Views
Finance allah shmoop what is contingent liability All right you
know what a liability is right It's a debt it's
a promise you've made that you need to fulfill teo
pay someone and fulfilling it can be done with cash
or ah promise of delivering inventory or after you've sold
the home to the joneses An interesting family with oddly
large foreheads you know delivering good title to the home
to them right So you're fulfilling liability of producing your
home so what's a contingent liability Well think of it
is a call option or a put option on a
security A contingent liability is a derivative of some other
underlying being like another liability Well the most common contingent
liability would be a filed lawsuit that is more than
just an ambulance chasing securities lawyer hoping to get a
quick five hundred grand to go away google might be
willing to pay three billion dollars toe by ring That
wireless doorbell company started by some weirdo contingent upon ring
properly defending its lawsuit from honeywell which claims that they
own the patents on the process while the financial outcome
of that lawsuit is a contingent liability to the company
Ring and the outcome of the joneses moving into town
well is a worldwide dominance and the enslavement of all
human I mean that's what's at stake their people But 00:01:31.39 --> [endTime] not least they keep their front lawn looking nice
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