Question

In: Finance

In your opinion what other two companies (non-bank) in the U.S. today are also too big...

In your opinion what other two companies (non-bank) in the U.S. today are also too big

      to fail?  Provide reasons why you selected these two companies.       2pts

Solutions

Expert Solution

The other two non-bank companies in the U.S. today that are too big to fail are Walmart and Apple.

Both Walmart and Apple have become deeply ingrained in the functionality of U.S. economy and hence it will become paramount for the government to intervene in those situations in which failure of these companies becomes a possibility. The government will do this to ensure that there is no disastrous impact on the economy as such. In 2017 Walmart generated revenue of USD 485.9 billion and Apple generated revenue of USD 215.6 billion. Both these companies provide direct employment to several thousands of individuals. They also provide indirect employment to several thousand individuals through their vendors, suppliers, supply chain partners etc.

In a way these two companies have become somewhat vital to the U.S. economy and hence letting them to fail will have a long term and deep negative implication and repercussion for the U.S. economy. Allowing them to fail will lead to a widespread damage to the economy.


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