A liability is an obligation that arises during the business. It represents a third party's claim on a company's assets usually from lenders, creditors, or the company's employees. The later is the result of the imprudence of the company in a certain obligation supposed to provide to the employee. In that case, the company is liable for the damages caused to the worker.
Income inequality refers to variation or discrepancy between income levels of individuals. Income inequality arises on various accounts one of which being, difference in abilities and talents.
All individuals possess different skill sets and their efficiencies vary too. Some individuals are more creative and talented than others while some are more laborious and hardworking.
Each skill set has it's own demand and thus, income is fixed as per the demand of a particular skill set for a given sector.
This leads to some earning lot more than others and differences in pay scales as per the abilities individuals possess.
