how is it that in times of crisis major businesses will go bankrupt within months? Do they have no savings or what?

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how is it that in times of crisis major businesses will go bankrupt within months? Do they have no savings or what?

In: Economics

14 Answers

Anonymous 0 Comments

Businesses need to be efficient, so any money they have needs to be “working” for the business, having it sit in a bank isn’t good for the business when they could use it to re-equip a factory or open another shop etc to generate more profit.

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