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A large company can absorb a lot more risk than an individual, or really any entity smaller than itself. In fact, that attribute - the ability to absorb risk (
by pliny 13y ago
A large company can absorb a lot more risk than an individual, or really any entity smaller than itself.
In fact, that attribute - the ability to absorb risk (and failure) is the reason why a corporation is a useful structure in the first place - nobody wants to take on a billion dollars in credit personally.
- faizanaziz 13y agoTrue, however large corporations take large risks also. When you invest in services like this its around 1000 USD. Imagine when companies are willing to take upward of 2 billion USD risk they won't do that unless they are sure.