<p>Human and animal sunk costs often aren’t, and sunk cost bias may be useful on an individual level to encourage learning. Convincing examples of sunk cost bias typically operate on organizational levels and are probably driven by non-psychological causes like competition.</p>
by Matt Shipman April 8, 2021 .
RALEIGH – A recent study of more than 2,000 companies finds that corporations feeling the pinch of financial constraints can benefit significantly from taking a more aggressive stance in their tax planning strategies. One takeaway of the finding is that tax authorities should look closely at the activities of companies facing financial constraints to make sure their tax activities don’t become
too aggressive.
Financial constraints aren’t unusual and occur when a company can’t afford to fund a project that would increase its value. Sometimes the constraints are caused by an external event – like a pandemic – that leaves companies with less income than they were anticipating. Sometimes the factors causing a constraint are specific to a single company, such as corporate mismanagement.
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A recent study of more than 2,000 companies finds that corporations feeling the pinch of financial constraints can benefit significantly from taking a more aggressive stance in their tax planning strategies. One takeaway of the finding is that tax authorities should look closely at the activities of companies facing financial constraints to make sure their tax activities don t become too aggressive.
Financial constraints aren t unusual and occur when a company can t afford to fund a project that would increase its value. Sometimes the constraints are caused by an external event - like a pandemic - that leaves companies with less income than they were anticipating. Sometimes the factors causing a constraint are specific to a single company, such as corporate mismanagement.
For the vast majority of human existence, international trade was fuelled by renewable energy. Trade winds were used to cruelly bring enslaved labour from Africa to grow cane, limes, bananas, and cocoa in the Caribbean and powered the windmills that turned the cane into molasses and sugar.