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Subject: Blame game - What cash is used to determine payouts? rss

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AD .
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I am confused with the blame game section when it comes to payouts.

I understand that in the game, each company has a "balance sheet" represented on their own private company board.

But if a player is "fired", isn't all the companies cash irrelevant of where it is on their balance sheet, considered when determining payouts?

So,

Quote:
total company cash = this years income + last years income + free cash



But, according to the rules;

Quote:
The players who got red now claim their exit bonus. If the CEO leaves, he gets 40% of the current free cash (rounded down) paid to his private account; the CFO and COO get 20% each if they are forced to leave. Note that this is the only way a player can get private cash. The rest of the money stays in the free cash slot of the company.


This has me confused.

Isn't last years income, this years income and free cash part of the same thing?

I imagine as a set chart.



Can someone clarify -- why isn't all cash used to determine payouts?

The only thing I can think of is that revenue is not considered part of a companies liquid cash?
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Ken Dilloo
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Everything is relative to perception, and your perception is limited.
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Not sure if I can offer a thematic reasoning, but sufficed to say, the movement of money, among those spots, is hugely important in the mechanics. When you play the game, it really makes perfect sense.
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Darrell Hanning
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To answer your first question, no, it isn't irrelevant of where the cash is on the balance sheet. Are you reading the rules with the game in front of you being played?

To answer your second question, no, they are not all part of the same thing - they are kept in separate locations for a reason. You must first determine whether the company's profits dropped for this year, compared to the last year. This requires you to keep the money in three separate locations.

And it is only when the sequence of play states that last year's profit is moved into free cash, and this year's profit is moved into last year's profit, that you will have the free cash portion increase.

Since this process must continue to work for future turns - even after someone is fired - the answer to your third question must be "no", only free cash at the time of firing is considered when computing a payout.
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AD .
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I did read the rules.

It was just thematically, a balance sheet is a point in time. Its not "separate entities" except on a ledger sheet.

But regardless, many thanks for your assistance.
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Darrell Hanning
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I never questioned whether you read the rules.

"Thematically" still doesn't make things simultaneous. Even in the real world, cash flow is a very real thing - money gets tied up in overhead, invoices don't get paid on time, funding comes at the beginning of long-term projects. Don't take my word for it - ask any corporate accountant. You seem to be deliberately misconstruing a concept to fit a preconceived notion that doesn't even model reality.
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AD .
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Okay, many thanks
 
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