The number of Corporations in an enterprise

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The number of Corporations in an enterprise

The number of corporations per enterprise is unlimited but increasing the number above 700 is not very easy. The max number of corporations that a CEO can start in other countries or directly purchase from others is 700.

A CEO can purchase shares of corporations on the share market and try to become the largest shareholder. Once the CEO is the largest shareholder, the corporation is added to the holdings of the enterprise.

There is no limit to the number of corporations a CEO can add to her/his holdings using this procedure.

Enterprises with more than 700 corporations will not be able to start new corporations but their holdings will not be affected in any way. They remain free to purchase shares and play the stock market.

Very large enterprises however are less profitable. There is an extra cost involved in the management of a high number of corporations and it will increase with the increasing number of corporations.

Enterprise profitability is optimal in enterprises with up to 400 corporations. The profitability declines for enterprises with 400 to 800 corporations and it declines even more for enterprises with more than 800 corporations.

Larger enterprises can produce more profit that smaller ones at any size but the profitability of two enterprises with 500 corporations each, is much better than the profitability of one enterprise with 1000 corporations.

The score of the enterprise depends on the number of corporations but it also depends on the average market value of the corporations.

An enterprise that has a smaller number of corporations but achieved a high market value per corporation may see a higher total score. Having a large number of unsuccessful corporations is not a reason for a high score.

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