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Hmmm... He only inflated order numbers to investors, he didn't inflate revenue, per the article. So that could be looked at in two different ways. Investors c
by IanDrake 10y ago
Hmmm... He only inflated order numbers to investors, he didn't inflate revenue, per the article.
So that could be looked at in two different ways. Investors could see a stagnant growth in revenue while orders increase and get scared or they could look at the order trend and get excited.
I think if Apple sold 40% more phones and revenue was stagnant, investors would freak.
As far as a way to fund his company, here's two ways to put money in the business that we seem to be comparing here:
1- Take money you've earned, pay taxes on it, and then reinvest or loan to your company.
2- Take money you've earned, donate it to a charity which saves you paying taxes on that amount, then have the charity buy product from the company thus putting the money (less expenses to provide product) back into the company.
If the incremental cost to provide the tests is less than the tax rate, this could be an efficient way to fund the company, but it results in no increase of ownership or interest gain.