Enterprise controlled public corporations are public corporations where the largest share holder (which is not an investment fund) is the enterprise. The largest share holder does not have to hold a majority of the shares. If the enterprise holds 51% of the shares, it is obviously the largest share holder but it may also hold 10% of the shares and if none of the other share holders have more that 10%, it remains the largest. It is possible that one of the other shareholders will buy more shares and have more than 10%. If this shareholder is another enterprise, the corporation will remain enterprise controlled private corporation and control will pass to the enterprise that holds these shares. In case that an investment funds is the major shareholder, control will remain with the largest shareholder which in not an investment fund. Investment funds can be large shareholders but they never control corporations. Public corporations can achieve higher quality and efficiency than state and private corporations. Public corporations where the largest share holder has less than 25% of the shares, can achieve even much higher quality and efficiency and can become very profitable.
Role of a CEO
The role of a CEO in an enterprise can vary from country to country and from planet to planet. Those that play on FB would be more out to make weapons and munitions for fighting countries while taking the most peaceful role you can on the planet.Though it can be rough for CEO's.
But enterprises support the majority of production in all worlds.They need less resources and have no need to worry about training workers.As long as they can make enough money to start, they can boom very quickly.
Also, if you play as both a CEO and President of any countries, an enterprise helps to build up troops and supplies for anything that is going out of stock.As said in other sections, you can store weapons in an enterprises storage without needing the soldiers or ammunition as you would with a country.this is especially helpful for those that wish to have access to the weapons that are out of stock. The only delay would be actually selling them to your countries if you are short of on hand cash and soldiers to man the weapons.
Advantages and Disadvantages
1) CEO owned corporations cannot be directly targetted in war, however they can be destroyed from indirect damage caused by nuclear blasts and earthquakes.
2) CEOs can store weapons without having to maintain a standing army to man the weapons, and without having to use ammunition for training purposes.
3) CEOs can purchase stocks in any public corporation in the world, whereas countries can only purchase stocks in public corporations in their own territory (exception: investment funds of countries can buy stocks anywhere).
4) CEOs can bid on any corporation in the world, whereas countries can only nationalize corporations in their own territory.
1) CEO owned corporations must pay 36% of their turnover to the country they reside in as a country resources used fee.
2) CEOs must rely on other presidents to maintain adequate levels of employment.
3) CEOs have no control over the level of taxation that is set by the presidents of the countries their corporations are located in.
4) CEOs have no way to protect their corporations from hostile takeovers.
Starting a Enterprise
When you start playing Simcountry as a CEO, you start with nothing. There is no country or citizens to take care of. These are taken care of by the presidents of countries. The enterprise is initially empty. It does not have any money and it does not owe anything to anyone. There are no loans and no cost or income.
You may start looking for a place to setup your first corporation. New CEOs can easily build their corporations in Computer Controlled Countries (C3s), these are countries that do not have a president. These countries are run by an automatic procedure and their economy is OK. They have some unemployment and will be happy to allow you to build a new corporation. New players can start building in C3 countries and are unable to build in president controlled countries until they have six corporations in C3 countries.
CEOs need permission to build new corporations in countries with presidents and some presidents are not so happy to accept anyone they do not know and may refuse permission. C3s are always willing and permission is immediate. A CEO with at least six corporations can start building in countries with presidents.
Another way to quickly increase the number of corporations you own is to bid for buying corporations owned by the Gamemaster Corporations Enterprise. This enterprise receives ownership of corporations that do not have any player as a share holder. If an enterprise is abandoned, corporations may end up in the Gamemaster Corporations Enterprise.
Corporations that have investment funds as the only shareholders are also placed in the Gamemaster Corporations Enterprise and can be bought by any enterprise.
When building a new corporation, you may choose the products you want to produce and start the construction of corporations. While doing so, you may discover that the country you try to build in, does not have enough unemployed workers for the corporation you want to build. You can try and find a different country to build in but you may also decide to build the corporation anyway. You can do so if the country has at least some of the workers you need in all groups of workers that are needed in that corporation.
Workers in the countries tend to move between corporations and find better jobs that will pay more. If you set salaries in your corporations at a level that compete with the salaries in other corporations in the same country, workers will move to your corporations and you will be able to produce at full capacity.
You may also choose to launch a bid for an existing corporation in any of the countries. You will compete against other bidders and against the current owner of the corporation, who may do his best to improve his corporation, increase its value and block your bid. Increasingly, presidents understand that private and public corporations are great contributors to their country's economy and they allow them to build.
An increasing number of presidents are looking for CEOs to build corporations in their countries and publish their requests on the forum.
CEOs have to ask for permission from the president to build a corporation in his/her country. The president must answer or if the president does not answer, permission will be given anyway after several game months.
The money you need for the building of new corporations or for the takeover of existing corporations will come from your cash if you have any or from loans you can ask for or you get automatically when your enterprise cash is negative. These loans must be paid back and you also pay interest. Players receive initial donations of Gold coins that can be exchanged into game money.
Most corporations become profitable and pay taxes to the country where they reside and pay some of the profit after tax, to the enterprise. Corporations will also increase in value and increase the total asset value of the enterprise.
Corporate profit, loss and cash flow
As a result of this way of computing the costs of the corporation (which is very close to the way the real world works), corporations show a stable financial process. Their income and cost may vary from month to month but the cost depends on the level of production and is independent of the purchase of raw materials. The quality of raw materials used in production is very important as the quality of the produce, depends on the quality level of the production process and the quality of the raw materials.
The cash flow in a corporation is more erratic. There are many months with income from product sale and no cost for materials, which causes the cash to go up fast. There are also several months when the corporation makes large purchases of materials and its cash sinks very fast and may end up deep in the red. In general, the total of cash plus the value of materials in stock plus the total debt of the corporation is stable and will go up if the corporation makes a profit and down is it loses money.