Traditional Culture Encyclopedia - Traditional customs - Why does the bigger the boss does, the more debt he has? Very little movable funds?

Why does the bigger the boss does, the more debt he has? Very little movable funds?

The bigger you do, the easier it is to mortgage. The more loans you get from the bank, the more debts you have. Real big business is done with bank money, and their own money is used for enjoyment. This is the reason why banks have so much debt.

"Liabilities refer to the current obligations formed by past transactions or events of an enterprise, which are expected to lead to the outflow of economic benefits from the enterprise. Current obligations refer to the obligations that the enterprise has undertaken under the current conditions. Obligations arising from future transactions or events are not current obligations and should not be recognized as liabilities. "

"Liquidity refers to all current assets of an enterprise, including cash, inventory (materials, products in process and finished products), accounts receivable, marketable securities, prepayments and other items. Liquidity = current assets-current liabilities. Strengthening the management of working capital can speed up the turnover of working capital, reduce the occupation of working capital and promote the development of enterprise production and operation. Strengthening the management of working capital is conducive to promoting enterprises to strengthen economic accounting and improve the level of production and operation management. "