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Not many companies could afford to pay their entire payroll for a quarter, if sales were $0.00 for that quarter.


Most companies also have steady revenue streams.


Or at least revenue forecasts.


Like other comments said, any company should have a revenue forecast. Companies that don't have a steady revenue stream will have enough cash from either capital reserves or financing. If you don't then don't hire a employee.

Companies that already have employees and forecast they cannot make payroll (say) 6 months from now will typically either borrow money or start lay-offs, not hire more people and worry about later. Failing to pay wages is a serious problem.




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