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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement. Let’s first look at the balance sheet. Therefore, the balance sheets of physical and digital companies present entirely different pictures. billion and $0.8

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How the Great Recession Changed Banking

Harvard Business

The banks that have nearly completed their regulatory agenda have a head start, since they can free up more financial and human resources to address evolving technology. That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take.

Banking 28
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We Need to Approach AI Risks Like We Do Natural Disasters

Harvard Business

The good news is that natural disasters themselves, which Munich Re says caused $330 billion in economic losses globally in 2017, provide a template for how to mitigate the growing and catastrophic risk posed by AI. Our growing reliance on so many intelligent, connected devices is opening up the possibility of global-scale shutdowns.

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Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

That deal sent the price of Brent crude oil to above $70 a barrel in January, after the industry that had suffered through $54 per barrel oil on average in 2017. Most major producers with large balance sheets will likely hedge their bets and attempt both.

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Midsize Cities Are Entrepreneurship’s Real Test

Harvard Business

In contrast, our scale up methodology assumes that selfless contributions of time and resources – donating blood, if you will – for growth can only go so far. We taught lending officers how to talk to businesses that were afraid that taking debt onto their balance sheets was riskier than maintaining a flat-growth business.

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

Rather than cut expenditures to a level that could be supported by recurring revenues, the city mostly used non-recurring resources to fill the gap from one fiscal year to the next. It is not a balance sheet test, but a cash flow test. So, Chicago’s structural budget gap is a political, not economic, creature. State Rep.