4 ms·
How is there value to society in zombie corps that no longer make a profit?
by fallingknife 3y ago
How is there value to society in zombie corps that no longer make a profit?
- pjc50 3y agoThe employees are still getting paid! Quite often the product is genuinely useful. It may be a beloved brand. Companies don't vanish the microsecond they cease to be profitable and nor should they. It's only when they run out of cash. I don't think it's anyone's job to be "euthanizing" low-profit businesses that might recover if there is a turn in the economy. The "zombie" concept is economically illiterate. Occasionally you will get a private equity firm doing this and the result is widely unpopular (Toys R Us, Maplin, etc)
- rightbyte 3y agoThe employees and customers are surely a part of society. More offent than not, not making enough profit is overreaching the profit goals to justify unfair stock prices. And the executives and board make bad gambles since they lose the owners money if they lose and win the owners money of they win.