When I hear companies that lost millions of dollars in the quarterly earnining, where does that money come from? How can they stay in business if they lose money?
2007-01-11 18:08:20 · 4 answers · asked by CommanderQ 3 in Business & Finance ➔ Other - Business & Finance
credit -- they have credit at a financial institution or they have good
contacts in higher echelons or both. usually both.
PS. do not forget company has assets. and large ones --even if they lose money
on a yearly basis, and assets are "money" if you show them as collateral. hope it helps. good question.
2007-01-11 18:32:42 · answer #1 · answered by s t 6 · 1⤊ 0⤋
You can lose money and still be in business as long as you have positive cashflow. Business is all about profits and positive cashflow. Perhaps a comapny could lose 20 million dollars in one deal but make a 100 million dollars in another deal for a total/net profit of 80 million in addition to having positive cashflow.
2007-01-11 18:15:39 · answer #2 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋
The company could either have a backup supply, earns more than it loses or millions of dollars is just considered worthless in the company.
2007-01-11 18:26:17 · answer #3 · answered by Unazaki 4 · 0⤊ 0⤋
because they have billions more!
2007-01-11 18:15:29 · answer #4 · answered by sunshine090892 2 · 0⤊ 0⤋