Profit payments
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Simcountry is an Online Digital World where you are the President of a country. |
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Profit payments
Corporations pay part of their profits to the shareholders (owners). State corporations pay the country, which is the owner of the corporation. Private corporations pay the enterprise and public corporations pay dividends to the shareholders. The level of payments can be set by the owner.
Corporations that have large loans and negative assets should in fact not pay profit sharing or dividends. They should take care of their own finances first. Some corporations pay large amounts in profit sharing and keep so little cash for themselves that the cost of upgrading such corporations must be paid out of increasing loans.
Corporations are prevented from paying out their profits if the total assets of the corporation or its net cash (cash less loans) are negative. Retaining more cash in the corporations will help them to reduce their debt.
It is also possible to support corporations with cash from the country or enterprise. It will be a good move to reduce corporate debts and in this way also prevent bankruptcy of many corporations. Bankruptcy is disastrous as the owner inherits the debt of his bankrupted corporation.
Corporations with large amounts of cash are forced to transfer some of the cash to their owners. These transfers begin at net cash levels of around 50 B and amount to 2 B per game month and they are increased if net cash is at 100B and 300B levels.
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