Answer:
A negative net worth indicates the situation in which a company, person, or economic group has a large amount of debt that exceeds its assets. For example, if a company is valued at $ 1,000,000 but in turn owes debts of $ 2,000,000, it has a negative net worth of $ -1,000,000 (1-2: -1). It is the situation that leads companies to go bankrupt, since the amount of unpaid debts generates bankruptcy.
