Private Corporations

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Private Corporations

Corporations that are owned by Enterprises are private corporations. These corporations are either set up by a CEO and have always been private corporations or they have been purchased by the enterprise from a country and changed from state corporations into private corporations.

Private corporations are bound by the same rules as state and national corporations. The economy and the way business is conducted is the same. Many details on how corporations function are described in the corporations document.

Private corporations pay taxes to the country where they reside and share profits with their owner, the enterprise. Unlike state and national corporations, private corporations are allowed to transfer cash in and out of the corporations to the Enterprise. (State corporations can be supported by the country but cannot freely move cash out of the corporation to the country).

Private corporations also pay a percentage of their turnover to the country as a contribution against cost to the country and as an extra profit sharing with the country where they reside.

The amounts involved are high and constitute a major contribution to the country. The revenue sharing is an important reason why many presidents want to have many private corporations in their country. Most large and successful presidents have many private corporations in their countries.

Private corporations can go public. The procedure is automatic for private corporations that have a market value above 300 Billions but CEOs can try and bring their corporations to the stock exchange even at lower values. The market value needed for a corporation to go public may vary over time.

Taking corporations public means that some of the shares in the corporation will be sold and the owner of the enterprise selling these shares will receive the proceeds from such sale. Enterprises can sell some of the shares in their corporations and use the proceeds to repay loans.

Private corporations can also go public and issue new shares. In that case, the money received from these transactions remains in the corporation and can be used to improve the financial situation of the corporation itself.

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