I was not aware of debt financing, but thinking more about it now makes a lot more sense to me because thats the only way to keep a business going, to make things happen sometimes you have to take out debts. Projects at times may be costly to start up but they will earn a large profit so what the firm must do is check if the costs outweigh the benefits or vice versa.
What confused me was how can a company or an entrepreneur in this case make any profit to keep the firm afloat if he/she is constantly taking out loans to finance projects, aren't they eventually going to have to take loans to pay loans? At that point its just not worth it.
How do you know when it's time to give up? How do you know you need to give up on the project because it's just not worth it. Some people get very attached to their idea and don't want to accept the fact that its not going to work out and that the idea will fail.
How do you know when it's time to give up? How do you know you need to give up on the project because it's just not worth it. Some people get very attached to their idea and don't want to accept the fact that its not going to work out and that the idea will fail.
There isn't anything I disagree with the writer in this chapter because it is very concrete and the ideas are very basic so that there isn't much they could go wrong on.
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