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I imagine it’s a lot like any other cash flow issue. It’s in no ones best interest to halt the company the instant it can’t meet its obligations by $1. You get
by grogenaut 8y ago
I imagine it’s a lot like any other cash flow issue. It’s in no ones best interest to halt the company the instant it can’t meet its obligations by $1. You get a loan instead. But when do you halt the company?
- Retric 8y agoCompanies don't have a choice to pay their electric bill or not. They are given a choice to pay their workers via under funding pensions. Shockingly the second causes more problems, because companies will take out a loan to fund the first but quietly under-fund the second for years until a small problem becomes a huge one.
- RestlessMind 8y agoWhy not go the free-ish market route (with politically acceptable regulations like creditor protections) and let the owners decide how/when to halt the company?
- grogenaut 8y agoThe answer seems to be never halt the company in most cases, just split it up and write off parts. When did yahoo end?