Suggestions and discussion on revenue sharing
Posted: Thu Oct 15, 2015 2:34 am
Hi all,
Huge proponent of subsidiaries as a tool to increasing revenue by reducing cost and increasing efficiency by reducing redundancies.
Currently in this expansion, the only real ways that are viable to move profit from a subsidiary to a parent company are to a. trade in the stock of the subsidiary, or b. using dividends.
In the current beta version, using dividends is not feasible, and here is why; When income is reported, the game currently does not include items in the other profit section of the financial reports. This is the category where dividend income is. Ergo, this means that when dealing with multiple subsidiaries, i.e. Primary company>company A>company B, the dividends paid by company B to company A are counted as "other profit," and so the following year, those profits are not paid to the primary company by company A.
What is needed now is a simple option for sharing profit between companies owned by a parent. My thinking at this point, is to have an option when creating a new subsidiary to "share revenue." This would mean that the financial report for company B for example, would be blank, and company A would be liable to pay all expenses and share all profit generated. Since company A is responsible for company B, an budget option should be presented, to be modified yearly. This way,company Bs' liability is taken by company A. In the case that the budget is exceeded, company B can take a loan, close firms, or sell land, or company A can do the same.
Tell me what you all think.
Huge proponent of subsidiaries as a tool to increasing revenue by reducing cost and increasing efficiency by reducing redundancies.
Currently in this expansion, the only real ways that are viable to move profit from a subsidiary to a parent company are to a. trade in the stock of the subsidiary, or b. using dividends.
In the current beta version, using dividends is not feasible, and here is why; When income is reported, the game currently does not include items in the other profit section of the financial reports. This is the category where dividend income is. Ergo, this means that when dealing with multiple subsidiaries, i.e. Primary company>company A>company B, the dividends paid by company B to company A are counted as "other profit," and so the following year, those profits are not paid to the primary company by company A.
What is needed now is a simple option for sharing profit between companies owned by a parent. My thinking at this point, is to have an option when creating a new subsidiary to "share revenue." This would mean that the financial report for company B for example, would be blank, and company A would be liable to pay all expenses and share all profit generated. Since company A is responsible for company B, an budget option should be presented, to be modified yearly. This way,company Bs' liability is taken by company A. In the case that the budget is exceeded, company B can take a loan, close firms, or sell land, or company A can do the same.
Tell me what you all think.