1. the liability of a firm's owners for no more than the capital they have invested in the firm;
The Collaborative International Dictionary of English v.0.48:
Liability \Li`a*bil"i*ty\ (l[imac]`[.a]*b[i^]l"[i^]*t[y^]), n.;
pl. Liabilities (-t[i^]z).
1. The state of being liable; as, the liability of an
insurer; liability to accidents; liability to the law.
2. That which one is under obligation to pay, or for which
one is liable. Specifically, in the pl., the sum of one's
pecuniary obligations; -- opposed to assets.
Limited liability. See Limited company, under Limited.
WordNet (r) 3.0 (2006):
n 1: the liability of a firm's owners for no more than the
capital they have invested in the firm