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Simcountry is an Online Digital World where you are the President of a country.
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The great company disappearing act (Fearless Blue)

Simcountry: Simcountry Bulletin Board  The great company disappearing act (Fearless Blue)

Jorge Candeias (Fearless Blue)

Tuesday, November 02, 2004 - 11:02 pm Click here to edit this post
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Like I said, you had answered your own question. They had huge debt loads, little cash coming in, and so they closed. When a corp reaches a certain point of sadness, it is simply closed down, its supplies sold of, and whatever money/debt is left is given to the country.
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Why should they? If my country is in a sad situation itself and these companies are making just barely enough money to pay interest to their humungous debts, why can't I simply decide that it's better to let them be like that for a while until my country recovers enough so that it's not too much of a load to assume the company debts? Or, at the very least, why wasn't I warned of what was coming in to decide on possible emergency measures?

Isn't this supposed to be a "realistic model"? In real life, companies that are in trouble and are labelled strategically important are subject to special recovery plans. Often these plans involve loosing money for a while. If the market goes down, some corporations loose money while it isn't up again, because it would be just plain stupid to simply close down and loose all your investment for something that could be nothing but a market hickup. Bankrupcy, BTW, only comes along when companies are no longer capable of getting credit, or when they are otherwise irrecoverable, not when they loose money.

Besides, if you are running a country in rl, you have to take into account the social consequences of your actions, and the same thing happens here to a point, so no, being a president is not like being a CEO. CEOs couldn't care less.

Limited Liability? That would surely make it easier to decide to close corps down, but don't forget it would put a risk in credit. Things would no longer work properly automatically, as they are now. You'd have to be able to assess the risk involved in giving a loan to a given corp or country and you'd have to be allowed to refuse.

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