Christopher used $5,000 from his savings and borrowed $10,000 to start his business. He spends $500 per month on supplies and $200 on marketing. What is the liability in this scenario?

A liability is money the business owes to someone else. Christopher borrowed $10,000, so the business must repay that loan. The $5,000 from savings is his own funding, while the monthly supply and marketing costs are expenses.

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