Bankruptcy is a possible consequence for having

Step-by-step explanation:

Bankruptcy is a possible consequence for having more liabilities than assets.

When assets are more than liabilities, then we say that

Assets-Liabilities = Capital

For any business, or individual always capital should be a positive amount.

Sometimes, due to adverse circumstances in the financial sector, the business may have a situation where

liabilities exceed assets.

Liabilities - Assets = negative figure which means insolvency.

Which is also called Bankruptcy.

Thus Bankruptcy is a possible consequence for having more liabilities than assets.

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step-by-step explanation: