Lynn Verinsky Because of liability insurance. (Laughter)

Doctors have to carry liability insurance just in case they make a mistake and hurt their patients.

There are many kinds of insurance such as health insurance, fire insurance, life insurance, etc.

Insurance.

This is annual insurance, for things like hazard insurance, and flood insurance, earthquake insurance, or whatever insurance you need where you live.

This is a liability.

Well, assets minus liability.

So that's a liability.

Then insurance!

The insurance?

My insurance?

Why is it a liability?

Accounts Payable is a liability

That'd be my liability, right?

That could be a liability.

So I have zero liability.

Big insurance agent.

We've no insurance.

I sell insurance.

Your liability would be the loan.

So now I have this liability.

I have 1,000 gold pieces liability.

And why is it a liability?

So it's a liability to me.

And pays off the liability holders.

So just this is liability, 750,000.

Subtract the liability from both sides.

I have life insurance.

This insurance covers everything.

We're good for insurance.

Do you sell insurance?

So I go to the insurance agent and the insurance agent says

Insurance, shoes, etc. Some examples are, for insurance, Lending Tree or Zappos.

So patients might buy an insurance company, or buy an insurance company...

We thought of people as a liability.

What is my assets minus my liability?

And then the offsetting liability for me,

That we'll just put generally as liability.

So the only liability is this 5,000.

This is a liability for me, right?

So over here you had another liability.

One is term life insurance and the other is whole life insurance....whole

liability side of the balance sheet as well.

that assets are equal to liability plus equity.

So he has a one IBM share liability.