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By that logic, every operating expense and capital expenditure is also zero, because if it doesn't make money, a company won't purchase anything.
by xpressvideoz 3y ago
By that logic, every operating expense and capital expenditure is also zero, because if it doesn't make money, a company won't purchase anything.
- kyrra 3y agoMaybe I'm missing something, but I agree? Business ideas regularly don't happen because it's to expensive to operate in a given field. Children's toys and equipment is an example. They have lots of regulation around requirements for recall procedures and product registration that add a lot of operational overhead for launching products in that space. Many businesses shy away from it because of those expenses, making it so certain ideas will never materialize there. Sometimes these kinds of regulations are good, sometimes they are not, but they are always limiting and the regulation steers the decisions private businesses will make.