Financial Education - Theoretical precepts supporting the publication on Production Reduction

In this section, I will address the theoretical precepts that support the publication on Production Reduction, with the intention of knowing the legality of the study.

It is worth mentioning that the theoretical bases comprise the set of ideas of a legal nature that serve as a referential testimony and support for the research being carried out.

In a company the reduction of production, occurs when there is a drop in the production of goods or services, due to multiple factors, such as the increase of production costs and the reduction of sales.

Decapitalization is the action of losing assets, that is to say, it is the consumption or loss of capital, when a company decapitalizes when its capital stock is gradually consumed, until it reaches the moment when its net worth becomes negative.

As for the penalties that a company receives and that affect its production, it is a positive or negative fact imposed on the obligor, even by force, as a consequence of the breach of a legal duty.