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.

Calculate consolidated financial statement accounts including receivables, inventory, buildings (net), and liabilities after a business combination.

Recognize the alternatives to the acquisition method and their applicability.

Understand statutory consolidation and its implications.

Evaluate the impact of business combinations on additional paid-in capital.

---

Definitions:

Order-taker

An individual whose primary job responsibility is to take customer orders in a retail or B2B setting, often without the requirement to upsell.

CRM System

A set of information technology tools used to help companies stay connected to customers and prospects, streamline processes, and improve profitability.

CLV System

Customer Lifetime Value system, a metric that estimates the total revenue a business can expect from a single customer account throughout the business relationship.

FAB Method

A sales technique that focuses on features, advantages, and benefits of a product or service to the customer.