The firm would incur a $550,000 penalty if no jobs were cut.
The firms will have to provide some of the project financing "out of their own pocket" and thus incur some of the investment risk.
The two firms incurred significant costs attempting to merge their back office operations, both of which had issues prior to the merger.
A firm usually incurs losses rather than profit.
A firm that is shutdown is generating zero revenue and incurring no variable costs.
However the firm still incurs fixed cost.
Following a series of financial setbacks, the firm incurred a $90 million loss in 1999 and terminated its CEO.
It is a lower bound because the cost includes no marketing or administrative costs which a stand-alone firm would normally incur.
We recognize, however, that firms may incur some cost to retain access to older technologies as electronic storage technology advances.
The reason for this disparity is that firms incur labor turnover costs when they replace insiders with outsiders.