Snivelling about capitalism...wasPrimaryinterface

27 Oct 2006 - 2:01pm
462 reads
Lorne Trudeau

" Oh, great example of profit motivation, a company that already has
$50B cash on hand. Are you serious?"

Perhaps you should ask the question "WHY does Microsoft have $50B cash
on hand?"
Cash sitting in a bank account doesn't achieve anything. If a company
gains wealth, presumably they should reinvest it in the company or pay
it out to the shareholders.
Microsoft holds this cash to mitigate risk. They are constantly at risk
from legal attacks as well very aggressive competitors. Accumulating
profit is NOT an end goal ... it is a strategy.

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