What are financial obligations or money that a business needs to pay others in the future called? are financial obligations or money that businesses need to pay others in the future.

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Business

Delaney Harper

8 October, 19:58

What are financial obligations or money that a business needs to pay others in the future called? are financial obligations or money that businesses need to pay others in the future.

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Anabel Black · Answer 1

Financial Obligation

Explanation:

If company has borrowed money or services or product or has used the facility by forming a commercial agreement it means that company owes money to that party. Just like you eat food in the restaurant and at the end you owe money to the restaurant because you used their products and services. So company also make contracts with parties and as a result company owe money to the parties so we say that the company has a financial liability or it has financial obligation because the company now have to pay money. Just like after eating food from restaurant you have to pay to the restaurant. If you don't pay, you will end up in jail. So its company's obligation to pay money.