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Under standard accounting rules it is possible for a company's liabilities to exceed its assets when this occurs the owners equity is negative Can this happen with market values why?
Wiki User
∙ 15y ago
It can happen
A: I don't think it can happen.
let us see...
equity = represents your ownership
80% equity = says that you own 80% of the business
zero equity = you have no ownership
negative equity = ???
Negative equity would just mean that you have no property plus you owe someone else which means its just another liability.
So I think its not possible
Wiki User
∙ 15y ago
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