Overview
Someone else's business problems are not your problems, although you will have to deal with the fallout from them today (whether you like it or not). It's very important for you to separate the person from these problems -- otherwise, you run the risk of being distracted by emotional issues. Be careful not to get more involved than you need to. The way you respond to things is your choice, and no one should be able to get away with questioning your motives.
