how is it that in times of crisis major businesses will go bankrupt within months? Do they have no savings or what?
In: Economics
Savings can get you only so far. Consider your own household income: it’s mostly your paycheck that covers your living expenses and you budget off them. Same with companies: it’s mostly their revenue that is used to cover their operations. If suddenly they lose the revenue stream, as is the case now with airlines, they just run out of cash to fund their operations.
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