Barriers to Exit
I’m confused about the notion of barriers to exit. If cash is king, then if you’re operating at a loss, you don’t have much time until you no longer have enough funds to keep your creditors happy. So to me, it seems like you’re going to run out of money well before a time when you decide to close up shop despite high exit costs. I don’t understand how you can keep your doors open for extended periods of time if you’re operating at a loss?
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