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Losses in a company can be caused by "shrinkage," which is having products or merchandise stolen by employees or customers. If customers do not pay for receipt of the product or services in the time they are performed, then the company does not have the money for new business. If a product proves to be defective and has to be recalled or replaced, that costs a lot of money for retrofitting (ie a car) and labor, not to mention retooling for the changes in new products. If employees do not show up, or work less than they should, then that also costs.

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