This is the total debt of the corporation. Corporations take large loans mainly to finance the purchase of large quantities of raw materials they need in the production process. Profitable corporations succeed in paying back these loans and in building a cash reserve that makes such loans obsolete. The need for loans also depends on the percentages of taxes and profit payments to the owners (share holders). If such payments are high, only a small fraction of the profit will stay in the corporation and large loans remain essential.
Simcountry Dictionary
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This is the total debt of the corporation. Corporations take large loans mainly to finance the purchase of large quantities of raw materials they need in the production process. Profitable corporations succeed in paying back these loans and in building a cash reserve that makes such loans obsolete. The need for loans also depends on the percentages of taxes and profit payments to the owners (share holders). If such payments are high, only a small fraction of the profit will stay in the corporation and large loans remain essential.