Incentive alignment. Target smashes damaged goods instead of selling them at a discount so employees or customers don't purposefully cosmetically damage things

Incentive alignment. Target smashes damaged goods instead of selling them at a discount so employees or customers don't purposefully cosmetically damage things they want to buy. If the failure state of a business is "the founder can buy it for pennies and try to make something of it", then why wouldn't all lifestyle businesses pitch themselves as VC-backed growth businesses and then use up all that money and settle as a lifestyle business?