Quote by Onthebeach_1
just to confirm there is no guarantee that the rich will always be rich :doh:
You are right.
I look at recession as a redistribution of wealth. While some lose money, others get it. For example, I have seen some big high street names bite the dust but in their place comes other companies selling the same products and making money.
Dave_Notts
Sometimes the same company in phoenix (as in 'rising from the ashes') form
That is very true, but quite often at the expense of all their creditors. often ensuring that many people lose their jobs, and plunging smaller hard working businesses into receivership.
That's business for ya I am afraid.
Their business model was set up as a gamble if all their eggs were in one basket.
Dave_Notts
Nope! not disputing that, however to let your company go bust surely indicates their bad business model?
I was thinking more along the lines of the the large busineses that know their going to the wall, and deliberately carry on screwiing the smaller businesses because they cannot pull out. Again "f*ck you jack, i am alright" a sad attitude to have and by all accounts now more prevelent than ever, and people wonder why society is like it is!!
how often do you think people purposefully let their businesses go bust? More often than not there will be personal guarantees in place which in the event of a business going bust will be called in which can mean company directors losing their homes. It's an offence for company directors to continue to trade when they know their company is insolvent, which will usually result in the directors being banned from holding directorships in future.
There are many reasons why companies go bust, the main one being cash flow. A company can be profitable but if it can't collect it's debts for whatever reason and meet it's cash flow requirements the likeleyhood is it will fail.
:rotflmao::rotflmao: