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> Most businesses operate close to break-even (in efficient markets), and many will immediately go under. Then they are not managing risk properly and actually
by cannabis_sam 5y ago
> Most businesses operate close to break-even (in efficient markets), and many will immediately go under.
Then they are not managing risk properly and actually need to go under.
- ac29 5y agoI'm not even sure that its true to a meaningful degree - at least in the US, large businesses dominate economically and are quite profitable (much better than "break even"). Microsoft, Berkshire Hathaway, JP Morgan - they are not going to "go under" if interest rates go up 0.25%, even though they all use corporate debt.