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Yogi Berra:“Make a game plan and stick to it,unless it is not working.”How does a firm...

Yogi Berra:“Make a game plan and stick to it,unless it is not working.”How does a firm know when its game plan is not working?
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Answer #1
From an economics standpoint, a firm knows its game plan is not working when
1) the firm does not make a profit or runs losses.
2) the firm has negative free cash flow
3) the firm has declining YOY(year over year) or QOQ(Quarter
over quarter) sales.
4) the firm has accumulated too much debt. In other words,
the debt is sizeable compared to assets and the debt is too
much for the firm to handle.
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