Credit Rating and Required Rate of Return: Suppose you and Warren Buffett borrow money from a bank. The bank will assess your credit ratings differently. Maybe the bank could offer Warren Buffett a loan without interest since it can be advertised as a bank used by the renowned investor. However, it will likely charge you interest because you have a lower credit rating and less fame than Warren Buffett. The interest rate each borrower faces, based on their creditworthiness, is called the required rate of return for creditors. Under the same conditions, the cost of poverty is much higher for the poor than for the rich. Poverty inherently involves costs. - Joseph’s “just my thoughts”
Video creators often face bankruptcy due to “editing.” Profit is essential for revenue generation; profit is realized only when revenue surpasses costs. “Editing” constitutes a significant “cost” to boost sales. There’s a belief that quality editing enhances the likelihood of sales. While this is somewhat true, survival until a sales surge depends primarily on minimizing costs (editing). It’s not filming, but “editing” that often leads video productions to financial failure. Nonetheless, many production companies fail to adequately factor in editing costs into their overall production expenses. The reality is that a substantial amount of money is tied up in “editing.” - Joseph’s “just my thoughts”