It represents a safety cushion for the company’s creditors, as w'ell as a skilled resource for the company itself. Each new' partner can add key strategic contributions. Its profits increase its equity whereas its losses decrease it. If losses become too large, the equity of the enterprise can turn negative. Such a situation is dangerous for the business because its stable jobs are no longer backed by stable resources. Selling the assets at their balance sheet value will not be enough to repay the debt.