Podcast #128: We chat with Kent C Dodds about why he loves React and discuss what life was like in the dark days before Git. Listen now.
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Multi-Level Marketing is viewed as unethical for (generally) two reasons: Many MLM's require you to 'buy in' at a certain amount, often paying some of that buy-in to the person who recruited you. For the worst examples, this turns into a pyramid scheme where the main value proposition isn't an underlying product, it is purely an opportunity to scam as many ...


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Why are there claims that MLMs are unethical? Because they work much like a pyramid scheme. Members don't make money by selling product, but by recruiting others into the scheme who then recruit others who then recruit others etc until, hypothetically, someone is going to sell the product. Hypothetically. Practically, members buy a lot of product up front ...


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In its basic form, a corporation is a type of 'privileged democracy'. Instead of every citizen having a vote, votes are allocated on the basis of share ownership. In the most basic form, each share you own gives you 1 vote. In most public companies, very few shareholders vote [because their vote is statistically meaningless, and they have no particular ...


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If your business is operating on an accrual basis, the income would be counted as occurring in 2016. If your business is operating on a cash basis, the income would be counted as occurring in 2017. If you don't know what that means, you are probably using a cash basis for your business, which means income and expenses take place when you actually receive ...


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How do I achieve my savings goals? This question is the essence of personal finance. Whether the goal is to save for a down-payment on a house, retirement, or just an expensive toy (like a sports or luxury car) the first step is to define what you are trying to achieve and work backward from the big goal to see how much you have to set aside periodically to ...


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Bill was the founder of Microsoft, so he did indeed have a large number of shares as the company was growing exponentially. He has previously donated a large share of his fortune to the Bill and Melinda Gates foundation, so his fortune would be even greater were it not for the philanthropy. He is still a large holder of Microsoft stock at about $12B ...


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You should have a separate business account. Mixing business and personal funds is a bad practice. Shop around, you should be able to find a bank that will let you open a free checking account, especially if you are going to have minimal activity (e.g. less than 20 of checks per month) and perhaps maintain a small balance (e.g. $100 or $500).


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When a business asks me to make out a cheque to a person rather than the business name, I take that as a red flag. Frankly it usually means that the person doesn't want the money going through their business account for some reason - probably tax evasion. I'm not saying you are doing that, but it is a frequent issue. If the company makes the cheque out to a ...


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Not at all. The Millionaire Next Door offers a book full of anecdotes on couples that earned money and saved their way to being millionaires. I believe about 1/3 or so had businesses, but the rest were employed and simply saved wisely. $3860/yr saved for 40 years at 8% will return $1M. Adjust the numbers to hit a million sooner or reach a higher goal. The ...


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This model would work fine under a couple of assumptions: that market interest rates never change, and that the borrower will surely make all the payments as agreed. But neither of those assumptions are realistic. Interest rate risk Suppose Alice loans $1,000,000 to Bob at 4% under the terms you describe. Bob chooses to make interest-only payments of $40,...


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When the 2016 models come out, the dealership marks down the 2015 model and then it sells pretty fast. The process doesn't take that long in the car market because the 2015 models are just as good as the 2016 so if they are just a little cheaper, they will sell quickly. If you want a 2008 Audi that has never sold, you are going to be looking for a long ...


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Is an MLM fundamentally unethical? The way to make money in an MLM is to recruit other people to join the organization, who recruit others, etc. You then get a percentage of their sales. People at the bottom level make little or nothing. People at the higher levels are rewarded, not primarily for selling useful products, but for recruiting people. I ...


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First off you need to consider startups aggressively subsidize their offer early on in order to capture market share. Popular examples of startups valued at billions of $ that were/are in the red include household names like Uber & Spotify that bled money for years on end. Also, take note social media platforms aim for the network effect and its a ...


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Keep in mind that all of the information below assumes: The barter occurs outside a black market and by agents who wish to comply with the law. Black markets are a different issue. You are fully aware that I am not a tax professional, so although I've tried to provide sources where possible, speak to someone who knows the laws of your respective country if ...


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You can apply for a position with any company you like, whether or not you are a shareholder. However, owning shares in a company, even lots of shares in a company, does not entitle you to having them even look at your resume for any job, let alone the CEO position. You generally cannot buy your way into a job. The hiring team, if they are doing their job ...


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Everyone has already addressed the problems with MLM, but I thought I would address the edit you just made: I know that the commonly cited downsides to MLM as users have mentioned is concerning the sale of actual products vs bogus products. While I agree with that assessment, I am wondering, how businesses could still adopt the MLM model, yet retain ...


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In the U.S., it is almost impossible to get a small business loan without a personal guarantee. If you aren't willing to back your own business, why should the bank or government back it? The SBA, for example, usually requires that anyone with a 20% or higher stake in the business sign a guarantee on any loans. After the business has been in business for a ...


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Is it an unattractive offer many buyers would shy away from? Buyer who have specific plan may skip getting into such deals as this would be an hindrance to resell the business. Others who are not sure, may buy it for to make money in future. Does it seem like a justifiably fair way to sell a domain, while keeping a stake in it? This is preview of ...


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Some benefits of having a business checking account (versus a personal checking account) are: You can deposit checks made out to the business name. This improves perception of your business's validity. You can have multiple signers on checks if you ever want to delegate paying bills to someone else. If you want to accept credit cards directly from a bank, ...


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The "$1000 is no money at all" people are amusing me. Way back in the mists of time, a very young me invested on the order of ~$500 in a struggling electronics manufacturer I had a fondness for. An emotional investment, not much money, but enough that I could get a feel for what it was like owning stock in something. That stock's symbol was AAPL. This is ...


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Fantastic question to be asking at the age of 22! Saving and Budgeting A very wise man suggested to me the following with regard to your net income save 10% for retirement, which you don't touch until you retire, but read about options you have for investing which I have written earlier save 10% for unplanned expenses (broken car, heath problem) save 10% ...


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To me the ethical concerns of MLM are centered around not accurately describing the business. This may be born out of the perpetrator's limited understanding. The key thing to understand about MLM is that you are building a marketing organization, not selling products. If you just sell the products, then you can be more profitable working for minimum wage....


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$1000 is not that much, and I think the best you can do with them is keeping them in a high-yield savings account (look at the online savings accounts that give 1% and more, not the regular bank savings accounts which are worthless). If you need money all of a sudden (for a school book, or rent, or bills, or some other emergency expense), you don't want to ...


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If I own shares of a company, am I entitled to apply as position of CEO? Sure, but anybody else can apply too. Who decides? The corporate board of directors, who are nominally chosen by a vote of the stockholders. I say nominally, because in practice they are nominated by the current CEO and it's very rare for stockholders to veto the CEO's choice. ...


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“Taking in equity” means selling shares, generally newly-issued shares. “Getting a board seat” means that you can nominate a person of your choice to be one of the board directors of the company. So 500Startups sold shares to Abu Dhabi Financial Group, who now have a representative on the board of directors.


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Why isn't the above the business model of a loan? It is the model of some types of loans. It's called a "Line of credit" (LOC). I have two them, one for my business, and one for me personally. (Why does this question exist:) Is it an 30-year loan or a 10-year loan? As you mentioned, the concept of term doesn't exist for these types of loans. As long as ...


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Mal: Wheel never stops turning, Badger. Badger: That only matters to the people on the rim. [such as Mal]. - Firefly TV series The lie is that MLM's promises rely on an infinite downline. And there's just no such thing. That's why they call it a pyramid scheme. Those work if there's an infinite pyramid. No product will support an infinite number ...


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This depends on the structure of business (Sole proprietorship vs corporation) along with whether the founder was required to 'guarantee' the loan. A lot of small business loans or lines of credit require that someone personally guarantee the loan, meaning they're responsible for paying it if the business defaults. If your business has sufficient financial ...


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Assuming that all debts were paid, [...] As an owner of the company, would I be able to keep the devices as my own property? What could happen to me if I kept them for myself? spain When the company is terminated and assets are enough to pay debts, remaining assets are distributed among shareholders according their share quotas. If new debt arises after ...


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Neither. Keep in mind that while you're on a payment plan with the IRS, you pay much lower interest than what you'd pay for a credit card debt. I suggest sticking to your payment plan and paying it off without incurring additional debt or rolling it over to credit cards.


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