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jmowreader

(52,582 posts)
3. That company already declared bankruptcy
Thu Jan 30, 2014, 06:43 AM
Jan 2014

Remember this line from Fight Club?

A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.


Business thinks this way: if the possible costs of having something blow up because we didn't fix it are lower than fixing it, it stays broken.

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