Ram moving back across the border?

John & Angela wrote:


Well, maybe a private car company could choose to just make less profit but a public one, eg share holders, not a chance. People will drop their stock like yesterdays news if company A is going to make more than company B. Unless of course the president wants to make up the difference to the share holder.

There is not that much difference from a private corporation and a public one. Particularly when discussing larger companies. They both have shareholders and directors to answer to. Maximizing business value is the same regardless of the legal organizational structure. Even smaller family owned businesses answer to someone and are just as susceptible to to the same pitfalls as larger corporations. I cannot tell you how many family companies we have contracted with that paid themselves too much of their free cash flow during good times and built up a certain "standard of living". And when things get lean they cannot afford to cut back on their earnings and everything snowballs.