Simcountry
Forum General CEO vs. state vs. publicly owned corporations (White Giant)

CEO vs. state vs. publicly owned corporations (White Giant)

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jmoula (White Giant)

All worlds
20 May 2011 20:08Link
Can anybody tell me the advantages/disadvantages of these different types of corps?
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Grand Nagus Zek (Little Upsilon)

All worlds
23 May 2011 05:36Link
CEO corps pay about a third of the "fixed property cost" for reasons unknown, and can upgrade quality/effectivity to 225.

Publicly traded corps with no single owner above 25% stake can upgrade quality and effectivity to 250, regardless of whether they're CEO or state controlled.
J
jmoula (White Giant)

All worlds
23 May 2011 20:17Link
cool.. So publicly traded and privately owned is the way to go
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Emperor Andross I. (White Giant)

All worlds
05 Jun 2011 00:23Link
Truly public corps (with no owner above 24.99%) result in huge profits for the country they reside in due to + dividends from shares (! by far the best way to increase profit as the corporation value increases), - resources income for the country, - tax revenues (even if taxes are low) due to increased productivity/effectiveness/quality.
I am trying to make all my corps truly public and so far I am happy that with most of them it worked perfectly and increased my monthly profit 10x :-D
If you want to be rich in Simcountry, make your corps truly public (even if you may have to spend some money at first - trulies pay back quickly).
J
Jo Salkilld (White Giant)

All worlds
05 Jun 2011 01:20Link
The disadvantage with public corps is that you can't transfer cash in if they are losing money. This can result in multiple loans and, eventually, the corp closing.

So be careful which ones you make public.

Hugs and respect

Jo
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Synicus (White Giant)

All worlds
05 Jun 2011 02:18Link
Also be careful with selling a 60 month supply of FMU and power. Selling shares can tank the p/e, so careful not to buy too many shares, and Keep an eye on the shareholders. :)
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Noproblem (Fearless Blue)

All worlds
05 Jun 2011 05:44Link
I'll just use this old thread.
Does anyone think that the country resources fee for CEO corps in c3's is too high?
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Synicus (White Giant)

All worlds
05 Jun 2011 09:21Link
I don't think they should be encuraged to flood the market with corporations, so no.
M
Maestro2000 (Golden Rainbow)

All worlds
05 Jun 2011 12:14Link
@noproblem - I agree the fee is too high.
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NiAi (Little Upsilon)

All worlds
05 Jun 2011 12:18Link
@noproblem- i concur, its too high in many cases. Fee ought to be reduced for corps with a yearly losses, since there are certain goods that have hard time giving any return of capital.
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Maestro2000 (Golden Rainbow)

All worlds
05 Jun 2011 12:21Link
Perhaps the country resource fee should have a modifier based on corporation profits.

Countries and ceo corporations should sink or swim together.
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Blueserpent (Fearless Blue)

All worlds
05 Jun 2011 12:22Link
Lowering the resources fee or removing it will only make countries raise tax.You could even find yourselves paying more if tax is hiked up far enough
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Kitsuné (Little Upsilon)

All worlds
05 Jun 2011 23:14Link
I do not think the CRU fee is too high. I have a lot of corporations in c3s that make 1B per month profit *after* tax.
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alan watt (White Giant)

All worlds
06 Jun 2011 00:32Link
So it is true that real public corps with no one above 25% ownership pay country resources like a ceo company? Including ones in and controlled by the country itself?
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Emperor Andross I. (White Giant)

All worlds
06 Jun 2011 00:50Link
I just checked and actually truly public corps don't buy country resources (at least mine don't). But they pay Fixed Property Cost and as their value, profit, production and efficiency increases (up to level 250) you make more money from dividend payments depending on their profit.
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warfreak (White Giant)

All worlds
06 Jun 2011 01:24Link
It is an interesting trade off. Public corps make more money, from both monthly upkeep, and initial selloff, but you don't get control of them.

CEO corps are useful if you want to use back to work schools and special clinics. They are the best option I see for most presidents, given how much money they make.

State corps are basically tradeoff against public corps really. You don't get initial profits from shares, but you get much more of a say with what you can do, such as profit transfer, sending off money to keep it floating, etc.

As for whether or not the fee is too high, I think blueserpent is right. If we remove or even lower it, it only gives more incentive to rise taxes.

Either way, I don't mind, I run mostly state own corps. Communist dictator!
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Emperor Andross I. (White Giant)

All worlds
06 Jun 2011 02:26Link
Actually as long as you keep the most shares of a corporation (24.99% is the lowest you really need to go to keep max. dividend payments while reaping the profits of a truly public corp) you still keep control of the corp, as long as no enterprise controls more of the shares than your country does. That way you can still control all aspects of it as if it was a state corp while getting much more income. The only risk is that an enterprise might buy enough shares to gain control and move the corporation elsewhere - which from my experience so far doesn't happen.
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Kitsuné

All worlds
06 Jun 2011 03:40Link
You keep control of the corp but you only get income equal to your ownership %. If you own 25% of the shares you get only 25% of the income.

Best setup for a truly public corp IMO:
0.01-24.99% owned by your enterprise
Buy the rest using the investment funds of 2 to 3
of your slave countries.
Your country can also own some but remember to keep
the country's % lower than enterprise.

Tax rate can be whatever you want.
Corp will benefit from lower fixed property cost and pay CRU to the country.
Any profit beyond that is split between your enterprise, IFs, and your country if it owns any.

Biggest downside to this is that it can be a real pain
in the ass to set up. IFs can only buy 4% at a time. Also
they might run out of cash if you have a newer country.
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alan watt (White Giant)

All worlds
06 Jun 2011 05:49Link
I'm a free player, so no ceo, but I may try to get public corps to 24.9 percent so i can keep control. I'll use my investment fund to buy 25.1 percent so no one can take it from my control.

lower fixed costs and country resources used plus a cut of the profits sounds pretty decent, although I'm doing quite well now owning 95 percent.
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alan watt (White Giant)

All worlds
06 Jun 2011 05:52Link
math was wrong I'd need over 50 percent from investment fund to make SURE. But I doubt it would matter unless someone decides to be a jerk. there are ways to get back at people like that.
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alan watt (White Giant)

All worlds
06 Jun 2011 05:53Link
I just reread your post, it seems you're implying it must be your ceo in order to gain country resources. If that is the case I'll keep things the way they are, which is good. :)
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Kitsuné

All worlds
06 Jun 2011 06:14Link
Yeah, sorry if that wasn't clear.
Country Resources Used and lowered fixed costs are a benefit of enterprise ownership. Country-controlled public corps don't get those advantages.

Also another correction: above, where I said to buy the remaining shares with 2-3 of your slave countries....I actually meant "other countries" not "slave countries" - a country's investment fund can't buy shares in corporations located on its own soil. Also a single investment fund can't own more than 40% of a corporation's stock, so you would realistically need at least 3 countries in total to make it work.