Early last month, the Senate announced an inquiry with terms of reference that cover the collapse of Dick Smith Electronics. There is a lot for senators to pore over in the float and failure of Dick Smith. From its float to its failure, the story of Dick Smith is ugly in its connotations for how business is done.
Photo: Kieran McGlone/ Flickr
In economic theory, the failure of this Australian retailer is consistent with a dynamic economy. Businesses that do not utilise economic resources as efficiently as competitors fall by the wayside. Unfortunately, the failure is also associated with a series of ugly looking events that are inconsistent with an efficient market.
The Senate now has a good opportunity to conside…
Read the full article at: http://www.lifehacker.com.au/2016/03/from-float-to-failure-the-ugly-story-of-dick-smith/