Why Would a Company Continue to Operate for Many Years

question 5

Essay

Why would a company continue to operate for many years while never once turning a profit rather than shut down immediately? Using revenue and cost analysis, explain when the company would shut down.

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Definitions:

Percent

A mathematical term representing a part per hundred, used to describe proportions or ratios.

Helmets

Protective headgear worn to reduce the risk of injury, especially in sports, construction, and transportation.

Opportunistic

Taking advantage of situations with little regard for principles or consequences, often to gain personal benefits or advantages.

Cinema

A movie theater where films are shown for public entertainment or the art of filmmaking itself.