While having no liabilities may seem like a good thing, it is not necessarily ideal. For example, a company with no liabilities may not be taking advantage of opportunities to grow or expand. Additionally, having some level of debt can be beneficial for a company, as it can help finance operations and investments. However, it is important for a company to manage its debt and maintain a healthy debt ratio 1 . It is also common for companies to make representations that they have no undisclosed liabilities, but this does not necessarily mean they have no liabilities at all