What happens when Wall Street takes control over any small business of any sort, becomes obvious with application of the basic accounting equation:
Assets = (liabilities + owner equity.)
The credit side of the equation is the former, debit side the latter.
Strictly speaking, equity is not considered a marginal cost, but because it offsets assets, that is the net effect.
Framed more concisely; the business must provide the livelihood for those involved with operations. They are, in reality, the sole productive stakeholders.
The business owner is the primary stakeholder, also extracting a livelihood, whether ownership contributes to productivity or not.
When the number of unproductive stakeholders increases, the cost of doing business also increases.
There are meritorious arguments asserting that the debit balance represented by increased stakeholders, is offset by "economies of scale," but they apply only to individual businesses.
When conducting meta-analyses of ownership consolidation and concentration, monetary velocity at specific points of income distribution curves become a nontrivial factor.
What happens when Wall Street takes control over any small business of any sort, becomes obvious with application of the basic accounting equation:
Assets = (liabilities + owner equity.)
The credit side of the equation is the former, debit side the latter.
Strictly speaking, equity is not considered a marginal cost, but because it offsets assets, that is the net effect.
Framed more concisely; the business must provide the livelihood for those involved with operations. They are, in reality, the sole productive stakeholders.
The business owner is the primary stakeholder, also extracting a livelihood, whether ownership contributes to productivity or not.
When the number of unproductive stakeholders increases, the cost of doing business also increases.
There are meritorious arguments asserting that the debit balance represented by increased stakeholders, is offset by "economies of scale," but they apply only to individual businesses.
When conducting meta-analyses of ownership consolidation and concentration, monetary velocity at specific points of income distribution curves become a nontrivial factor.