Expense-bearing refers to a financial arrangement, activity, or entity that involves the incurrence of costs or expenses. It describes a situation where an individual, organization, or project is obligated to cover certain financial outlays, such as salaries, materials, operational costs, or other related expenditures. This term is often used in contexts like business, finance, and investment to clarify the party or entity responsible for covering specific costs. The extent of "expense-bearing" can vary, ranging from minimal costs associated with a simple task to substantial financial burdens linked to extensive operations. The key aspect is the obligation or responsibility for covering the financial implications of the specific activity or entity.
Expense-bearing meaning with examples
- The new software implementation was a significant expense-bearing project for the company, requiring considerable investment in licensing, training, and ongoing maintenance costs. Initially, there were many hidden expenses, like integrating it with the already existing technology, making the project a burden on the current funds available.
- While the initial investment in renewable energy infrastructure was high, the long-term operational costs of the solar farm were significantly less expense-bearing than traditional fossil fuel-powered plants, leading to future saving and benefits. This makes it more cost-effective over time when operational costs are included.
- The terms of the loan agreement stipulated that the borrower was expense-bearing for all associated fees, interest, and any penalties incurred, underlining their liability for all the monetary aspects. The bank also mentioned the possibility of extra legal fees for the borrower.
- Investing in mutual funds can be expense-bearing, as investors must account for management fees, transaction charges, and other administrative costs, which directly impact their returns. They often do not realize the amount of expense-bearing situations they are in when starting.
- Operating a non-profit organization is often expense-bearing, requiring funding for salaries, rent, programs, and fundraising activities. Even though the goal is not profit, they need to keep up with expenses to exist.