Post by winstonwolf on Dec 22, 2023 8:51:05 GMT
First of all i would say this is the best game ever. It's not only feeding dopamine to our brain but also simulating the business world. The details this game offers give the big picture how business would be. People behave in transactions as if the money is real. Amazing.
However i'd like to offer some suggestions that might enhance the entrepreneurship experience even more closer to real life so it would give more detail picture when calculating a business and managing the money.
ACCOUNTING:
Building upgrade is not reported in operating expense under income statement. It should be reported in cash flow statement under investing activities because buying selling property plants and equipment are capital expenditure.
The loss on upgrading buildings should be reported as depreciation expense under operating expense in income statement.
Interest income from bonds should be reported in investing activities, not operating activities.
Accounting overhead shouldn't be that high and progressive. Instead, corporate income tax should be applied for fixed percentage (30% for example)
GOVERNMENT INTERFERENCE:
Application of tax could give the real picture whoever building business, anywhere in the world, have to pay tax. Therefore this mindset of paying tax is already there planted for everybody since day one.
Other taxes, like capital gain tax, value added tax, or tax haven countries, low cost labor from developing countries can be ignored at the moment.
In bonds, issuer of B rating can not give the same low 0,5% as AAA. Every grade has to follow the bottom rate. For example AAA - AA is 0,5%, A - BBB is 1%, BB - B 1,5%, etc.
And when the issuer misses payment, it should be noted in the company profile, marked, so next time they issue another debt, people can see this company had problem managing its debt and would consider buying their debt.
And there should be a charge to issue a bond. It's called the cost of debt.
Capital are funded from 3 major sources in business. Selling ownership, issuing debt, borrow from the bank. Bank is the cheapest but the hardest because they need collateral. Issuing debt comes second, and the most expensive is selling ownership when it is the easiest way to get capital.
So providing the options to borrow from banks and selling company's stock, would provide more real life picture of a business.
HUMAN NATURE:
Many people can make a lot of money, but only some people can manage their wealth. Those who can, are the 10% population of the world, who by the way, control 86% of wealth from entire world. It is a human nature, when we earn money, we want to spend it. So if there are things that can make the gamers look rich by other gamers when they visit his profile, just like many of us want to keep the lifestyle for others around us to see, should be added to the game. I see some people spending something unnecessary, only for building their head office look better or bigger. This is human nature. The hard part is how to make people feel rich by spending their money.
Collectibles are one of this. But need other more. Maybe sport cars, yachts, or building our own hospitals, fire department, banks, ability to buy informations, buying other company, or anything.
Make people to pay for getting entertainment (cinemas, restaurants, amusement park). This money has to be spent or productivity will be low (stress)
And also health care is inevitable. Humans complain how health care getting more expensive every year and can't afford it. But ignore to take care of it while healthy or when have the money. The problem is part of human life. Many people spent most of their fortune just to pay hospital bills for their loved ones.
And pension as well. Humans ignore this things.
Other thing from human nature is, everybody wants to get rich fast. Nobody wants to get rich slow. While the fact is, nobody gets rich fast. Unless you are lucky. So when this game has casino, horse betting, stock market, derivative trading, scammers, financial fraud, you will be amazed how many people will lose their fortune in the name of "getting rich quick"
I imagine how this game will give the best simulation about entrepreneurship, or being a decision maker executives like CEO CFO.
Well without these, of course, this game is still superb.
However i'd like to offer some suggestions that might enhance the entrepreneurship experience even more closer to real life so it would give more detail picture when calculating a business and managing the money.
ACCOUNTING:
Building upgrade is not reported in operating expense under income statement. It should be reported in cash flow statement under investing activities because buying selling property plants and equipment are capital expenditure.
The loss on upgrading buildings should be reported as depreciation expense under operating expense in income statement.
Interest income from bonds should be reported in investing activities, not operating activities.
Accounting overhead shouldn't be that high and progressive. Instead, corporate income tax should be applied for fixed percentage (30% for example)
GOVERNMENT INTERFERENCE:
Application of tax could give the real picture whoever building business, anywhere in the world, have to pay tax. Therefore this mindset of paying tax is already there planted for everybody since day one.
Other taxes, like capital gain tax, value added tax, or tax haven countries, low cost labor from developing countries can be ignored at the moment.
In bonds, issuer of B rating can not give the same low 0,5% as AAA. Every grade has to follow the bottom rate. For example AAA - AA is 0,5%, A - BBB is 1%, BB - B 1,5%, etc.
And when the issuer misses payment, it should be noted in the company profile, marked, so next time they issue another debt, people can see this company had problem managing its debt and would consider buying their debt.
And there should be a charge to issue a bond. It's called the cost of debt.
Capital are funded from 3 major sources in business. Selling ownership, issuing debt, borrow from the bank. Bank is the cheapest but the hardest because they need collateral. Issuing debt comes second, and the most expensive is selling ownership when it is the easiest way to get capital.
So providing the options to borrow from banks and selling company's stock, would provide more real life picture of a business.
HUMAN NATURE:
Many people can make a lot of money, but only some people can manage their wealth. Those who can, are the 10% population of the world, who by the way, control 86% of wealth from entire world. It is a human nature, when we earn money, we want to spend it. So if there are things that can make the gamers look rich by other gamers when they visit his profile, just like many of us want to keep the lifestyle for others around us to see, should be added to the game. I see some people spending something unnecessary, only for building their head office look better or bigger. This is human nature. The hard part is how to make people feel rich by spending their money.
Collectibles are one of this. But need other more. Maybe sport cars, yachts, or building our own hospitals, fire department, banks, ability to buy informations, buying other company, or anything.
Make people to pay for getting entertainment (cinemas, restaurants, amusement park). This money has to be spent or productivity will be low (stress)
And also health care is inevitable. Humans complain how health care getting more expensive every year and can't afford it. But ignore to take care of it while healthy or when have the money. The problem is part of human life. Many people spent most of their fortune just to pay hospital bills for their loved ones.
And pension as well. Humans ignore this things.
Other thing from human nature is, everybody wants to get rich fast. Nobody wants to get rich slow. While the fact is, nobody gets rich fast. Unless you are lucky. So when this game has casino, horse betting, stock market, derivative trading, scammers, financial fraud, you will be amazed how many people will lose their fortune in the name of "getting rich quick"
I imagine how this game will give the best simulation about entrepreneurship, or being a decision maker executives like CEO CFO.
Well without these, of course, this game is still superb.