

As far as I understand, all the money/asset value that goes into funding an organization is owed back to the investors, whether it’s as services bck to taxpayers, or dividends back to stock investors. Any start to an organization involves people/ other organizations seeding it with money
Taking on a loan gives you both money (pretty liquid assets) and debt (liabilities). If you just use that money to pay back the debt, you’re back to no liquidity - no leverage to do the things that cost money to get kickstarted or keep maintaining.
So the idea is that, if an organization uses too much in funds/all the assets to pay back the debt, they may not have enough left over to maintain/grow operations.
Source: I’m taking accounting, am struggling, and hate how evrything seems absolutely bonkers at first. But also, it all makes sense. Because real accounting accounts for goddamn evrything.





I’m sorry, but Doomerism has to die.
The only call-to-action I get from this kind of comment inspires is “give up & go home evryone; your fate is to suffer”
My intention with my own comment is to ask people to please keep the defeatist comments to yourself.
If you aren’t saying anything informative or supportive in Public discourse, what are you actually putting into the Public’s mind?