1. Human Resource Management: A natural capacity of an individual to complete the task at hand. Refer to the definition of aptitude. 2. Law: The ability to agree and act upon a legal obligation
ABILITY TO PAY
An individuals ability to manage their disposable income to pay a tax or loan. This is called capacity and is a deciding factor in loan decision. It is also called the five C’s of credit and fixed charge coverage ratio.
ABILITY TO PAY PRINCIPLE
A principle in economics that those with more wealth should pay higher taxes. This balances those with a lesser income who cannot afford to pay as much.
ABILITY TO PERFORM
Ability to perform ensures that both parties in a transaction have the financial capacity to complete a transaction. Companies and individuals with higher credit ratings have a higher ability to perform.
ABILITY TO REPAY
An individual’s ability to repay a debt. This term also extends to borrowing institutions. This is a key factor used in the lending decision.
ABILITY TO STAND TRIAL
Being able to physically and mentally able to defend yourself in court. The ability depends on medical findings done by consultants appointed by the court.
ABILITY TO SUPPORT
Having the capacity to make enough money that will enable to support a dependent or to have sufficient property that funds for support can be provided
ABILITY-TO-PAY TAXATION
A progressive tax theory that suggests the tax should be based on the ability to pay
Credit: Legal Dictionary
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