Capitalism 2 and Capitalism Lab Forum

Please see this thread for background: viewtopic.php?t=9694

In short, the question is:

Should there be a management policy that allows you to determine whether or not an AI manager of one of your subsidiaries can issue bonds or borrow from a bank? We already have the ability to stop a subsidiary from issuing stock, so why not bonds as well?

My experience has been that AI managers will occasionally issue bonds even when they're already profitable. This can get the subsidiary into financial trouble or hurt its profitability. For example, maybe you don't want the subsidiary to do any expansion. For example, you just want a subsidiary to manage your company's network of retail stores, or to be a standalone exclusive grocery store chain (with farms, etc.).

Yes, this option should be near the option that prevents the company from issuing shares. If the company runs out of money and can't raise money via shares it should ask the parent company for a bailout (i.e subsidiary has run out of cash screen).

Good idea. Hate when subsidiaries issue bonds for no reason. Would like much more control over AI investment and debt strategy