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Are liabilities always a bad thing?

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Question added by Mohammad Ashi CFA CMA , Group Finance Manager , QOAD
Date Posted: 2015/10/25
Liezel Mejia
by Liezel Mejia , Accounting Supervisor , Universal Robina Corporation

No, especially during expansion of business, considering your long-term goal is a success. But if the company is not profitable at all leading to its closure, then that would be the worst scenario of having liabilities. Since creditors have the highest priority, upon liquidation of assets.

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