Full liability for the debt and other obligations of a legal entity. The general partners of a partnership have unlimited liability. Bloomberg Financial Dictionary
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When a promoter is fully liable for the debts of the business, it is called unlimited liability. London Stock Exchange Glossary
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Where no restriction applies to an owner's losses in a business. In contrast with limited liability where the loss to owners, or shareholders, is limited by laws to the amount of capital they have invested.
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unlimited liability UK US noun [U] LAW, FINANCE
► a situation in which the shareholders of a company are responsible for all of its debts if the company fails financially: unlimited liability for sth »
Partners have unlimited liability for the firm's debts.
Financial and business terms. 2012.