The brain absorption companies:Consulting Firms make the world worse Background I saw the news that many highly educated persons in Japan try to join in consulting firms. Their purposes may be short term profits and early retirements. I knew their purposes because I had same purpose… Consulting Firms make the world better or worse? Consulting Firms doesn’t make new products nor new fields, they only try to win competitions. They make the world worse. Brain absorption companies Consulting Firms are the brain absorption companies which absorb the thinking of business managers. Consulting Firms try to take charge of CEOs’ thinking. So that Consulting Firms absorb client companies’ brains. Consulting Firms’ arm They admire business professors’ theory. They use it as arm to client companies. However, theory doesn’t allow just one counterexample. Business professors’ theory is not to be called theory, it is to be called as hypothesis or idea (or joke). So that consulti
Chapter 11 Bankruptcy Basics
Background
Chapter 11 - Bankruptcy Basics
https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
I searched about US Chapter 11.
US Chapter 11’s good points
There are some good points of US Chapter 11.(1)Speed up Reorganization
If almost bankruptcy company provides essential things or services, the company will raise their prices.
Because the company makes up for losses.
It causes the social cost higher.
(2)Prevent excessive repayments
US Chapter 11 can prevent excessive repayments.
In Japan, if someone borrow money from a bank, he/she will need a personal guarantee.
It causes to discourage entrepreneurs.
(3)Visible processes and goals
I heard that 99% of new companies will bankrupt.
We tend to focus on rest 1%, but 99% is bigger than 1%.
With the establishment of bankruptcy laws, the processes and goals will be visible.
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