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Bounded-input bounded-output stability means that every bounded plant input produces a bounded plant output from zero initial state. For a causal continuous-time linear time-invariant system with a proper rational transfer function, BIBO stability is equivalent to every pole of the reduced transfer function having strictly negative real part. Cancel common factors first: an apparent denominator root may be absent from the reduced transfer function. For $K/(\tau s+1)$ with $\tau >0$, the only pole is $-1/\tau$, so the first-order low-pass filter is BIBO stable. ^[ref]

Internal asymptotic stability also requires every unforced internal state to decay. A canceled factor can hide a growing internal state. For example, consider the linear system of ordinary differential equationsIts zero-state transfer function can be written $(s-1)/((s+1)(s-1))=1/(s+1)$ and has BIBO stability. Yet from zero initial conditions and a unit-step plant input, $x_2(t)=e^t-1$ grows without bound while the plant output remains bounded. The reduced transfer function conceals that second state. Even a transfer function with no visible cancellations can be implemented with additional hidden states; its poles alone do not establish internal asymptotic stability of an arbitrary implementation.

A proper rational transfer function is a rational function whose numerator polynomial has polynomial degree no greater than its denominator polynomial, after common factors are canceled. Every finite-dimensional continuous-time linear time-invariant system of the form $\dot{x}=Ax+Bu$, $y=Cx+Du$ has such a transfer function $G(s)=C(sI-A{)}^{-1}B+D$. ^[ref]