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"Could a person realistically and deliberately cause the deliberate failure or decline of a business, also known as 'tanking'?"
In psychology, self-handicapping, a concept related to tanking, refers to the behavior of creating obstacles or excuses to avoid taking responsibility for one's own failures or shortcomings.
Research has shown that approximately 40% of business failures are due to poor management, which can be linked to deliberate actions or inactions that cause a business to fail.
In the context of divorce, deliberately reducing income to avoid paying or to secure alimony is considered a form of economic abuse, a pattern of behavior used to maintain power and control over one's partner.
A 2019 study published in the Journal of Family Violence found that 25% of women in abusive relationships reported that their partners used economic abuse to control them.
In the US, the Sherman Antitrust Act of 1890 prohibits business practices that restrain trade or commerce, including deliberate actions to cause a business to fail.
The concept of "tanking" is also observed in sports, particularly in the National Basketball Association (NBA), where teams may deliberately lose games to improve their chances of getting a high draft pick.
A 2020 study published in the Journal of Sports Economics found that NBA teams that "tanked" during the regular season had a higher probability of winning the NBA draft lottery.
In the military, "tanking" can refer to the deliberate destruction or sabotage of one's own equipment or resources to prevent them from falling into enemy hands.
The concept of "tanking" is also observed in online gaming, where players may deliberately perform poorly or sabotage their own team to achieve a particular goal or outcome.
In the context of business, "tanking" can be a form of corporate suicide, where a company deliberately destroys its own value to avoid paying debts or fulfilling obligations.
In the US, the Sarbanes-Oxley Act of 2002 requires corporate executives to certify the accuracy of their company's financial reports, making it illegal to deliberately misrepresent or manipulate financial information to tank a business.
Deliberately causing a business to fail can lead to legal and financial consequences, including bankruptcy, lawsuits, and damage to one's professional reputation.
In some cases, "tanking" a business can be a criminal offense, punishable by fines and imprisonment, under laws related to fraud, embezzlement, or breach of fiduciary duty.
Research has shown that businesses that engage in deliberate self-sabotaging behavior, such as tanking, are more likely to experience long-term financial and reputational damage.
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