Liabilities (PO5, PO7, CO1, CO5)
Business liabilities can arise from many sources related to your business activities. The easiest business liabilities to recognize are clearly those which the entrepreneur has actively pursued, specifically credit and other types of financial obligations. However, liabilities may also arise from legal action or potential legal action. Whether a liability comes from a creditor or from a potential legal action the market value of the business can be substantially affected. In this forum, identify a company which you are aware of and evaluate a potential legal liability that you believe has the real possibility of becoming an actual legal liability and thus affecting that company’s market value. Include specific, realistic examples of at least two events which, if they occurred, might lead to legal action resulting in a substantial liability.
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