Wednesday, May 6, 2020

The firm what acts like Schrödinger's cat

 



The firm what acts like Schrödinger's cat


The problem with the firm is that it can be open or close, and there is no cross with those things. This is how the firm acts to customers. But the thing is that the firm exists, but if it doesn't get customers, the money storage of it would be lost sooner or later. And without customers the cash income for the company is negative. 


If the company operates in privately owned real estate that means that it should pay rents and other things. And if the result is negative, sooner or later the bank account will turn empty. If there is no income, what comes from customers or investors the money will end sooner or later. And this means bankruptcy. 


The problem is, how or why investors will put their money into some company, why those people or companies would make that thing? The business angel is the professional financial specialist, whose purpose is to get profit from the money, what they will invest in the companies. So if the interest, what the investor or "business angel" will invest in the company is 20%, that means that the "business angel" wants 1,20€ counterpart for each euro, what those people put in the business. 


And this is one thing, what those people would say immediately when the discussions about the financing are starting. Those people are giving money for nothing, and if they are giving that money, they want results. Of course, there is a possibility to give shares for business angels, and there is one question, why that person would take the position as the minority owner? 


If the firm would not have the incomes it turns the financial version of the Schrödinger's cat(1). It would exist, but sooner or later the bankruptcy will collect it. 


So the thing about the firm is, that it is some practical life version of Schrödinger's cat, which is an example of the thing, what is dead and alive at the same time. Or the firm itself can be in the situation, which is similar to Schrödinger's cat. It can exist, it can have space, where it operates, but it doesn't have any kind of functions. But if the firm doesn't have any kind of actions, it would be lost its money to the rent and other payments, and the thing that comes to its rescue is governmental support or large scale financial support. 


If the terraces will not open, the thing is that restaurants will make the defeat because the solid payments must always pay. So this means that there would be very large-scale financial problems after the COVID-19. Of course, governments can support this kind of company, but the thing is that there is always some kind of people, who are using this kind of situation for supporting their benefits. 


(1) https://en.wikipedia.org/wiki/Schr%C3%B6dinger%27s_cat

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