Comment 38619

By Craig B (anonymous) | Posted March 09, 2010 at 10:55:03

"A sound business rule has always been, when something becomes a liability, get rid of it!"

Not sure where Ms. Welsh got her business training. Whoever it was, they have failed.

Businesses need liabilities in order to survive. On a balance sheet, every liability has a corresponding asset and every asset has a corresponding liability. (Owner's equity is a liability, don't ever let anyone tell you differently).

A good businessperson will look at an entity and see the potential of its assets. A bad businessperson looks at an entity and sees fear, uncertainty and doubt related to the liabilities.

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