Daming 1805

Chapter 608 Official children and private bosses

"Your Highness, you don't know that our private business is really difficult..."

Lin Haidong, the owner of a small-scale private chair factory, was chatting with Judy Lan in his reception room.

Whether Zhu Zhulan is a prince or a local grassroots official, no matter how big the local people are, they can't help but see him.

Although it won't be as generous as in the classical era, when communicating face to face, you must at least be polite.

Even if Judy Lan is just a child under the age of fifteen, she must be taken seriously.

In fact, it was precisely because Zhudi Lan was already out for practical training under the age of fifteen that the relevant personnel paid more attention to it.

Most people are aware of the prince's education model. Everyone has a dedicated teacher, and the speed of learning depends entirely on the individual's talent.

He graduated before he was 15 years old. In ancient times, he was probably not a child prodigy, but he still had a complete education.

Rather than a short-lived flash in the pan simply relying on talent.

Judy Lan asked very curiously:

"What is the specific difficulty? Please explain it clearly to me. I will write it in the report to my father. Maybe there will be a chance to improve it."

Lin Haidong's serious expression did not ease at all:

“The most important thing is the limitation on the scope of business.

"The first basic principle of our private manufacturer's management system is 'double limited'.

“The first one is limited, which means that the owner has limited liability for the debts of the manufacturers in which it holds shares.

“It is limited to the amount of equity that you must also invest in the manufacturer’s account at the same time.

“If a company has a registered capital of [-] silver notes, then when the company goes bankrupt, it will only lose all of this [-] silver notes at most.

“There is no need to use other property to plug the hole.

“But at the same time, there is a second limitation, which is the limited scale of operations.

“Both the upper limit of accounts receivable and the upper limit of accounts payable shall not exceed the registered capital, and the company’s asset size shall not be lower than the registered capital.

“The contract amount is also directly limited to receivables and payables.

"The registered capital is only [-] silver notes, so you can't do business with [-] silver notes.

"I have already signed a contract for eight thousand silver coins, and I can only sign another two thousand silver coins at most.

“If you want to expand your business scale, you must first subscribe for more funds and increase your registered capital before you can participate.

“Also, lending and borrowing are limited within this range.

“The first one is limited, which really guarantees the safety of the owners, and they don’t need to bear unlimited joint and several liability.

“But the second one is limited, which strictly limits the size of the company.

“You must really have the corresponding equity capital to operate an industry of the corresponding scale.

“This has blocked the scale growth rate of private manufacturers...”

After hearing this, Judy Lan felt something was wrong:

"If there is no limit on the limited scale of business operations, a commercial bank with only a share capital of [-] banknotes, operating a business of [-] banknotes, and ultimately losing all its money, will only need to pay compensation of [-] banknotes at most.

"But what should people who are owed [-] silver notes by this [-] silver banknotes do? They obviously lost a total of [-] silver notes, but in the end they could only get back [-] silver notes in compensation. Isn't it a big loss? ?”

Lin Haidong sighed and said:
"There must be losses and profits in doing business. A contract between two companies lost [-] silver coins. Isn't it just an equal share for both parties to bear half?"

Judy Lan said directly:

“Legally, it cannot be shared equally, it must be borne according to the contract and responsibilities, unless both parties happen to need to bear half of the responsibility.

"What's more, you have [-] silver notes in your hand, but you don't let the funds become the company's registered share capital first, and then run a business with [-] silver notes.

"Instead, I went directly to run a business with [-] silver notes. Isn't it just that I want to lose up to [-] yuan to avoid debt liability?"

Lin Haidong was a little embarrassed:

"Your Highness is serious. How can this be called evading responsibility? Every time you make too much money, you change the registered share capital. Why shouldn't the government officials die in trouble?

"Moreover, business opportunities are fleeting. When I encountered a business worth [-] silver notes, I immediately went to change the registered share capital and it was too late.

"Besides, isn't there an insurance company? The contract itself is just insured..."

Judy Lan said helplessly:
"Can't you start a business with a limit of [-] silver notes in the first year, save [-] silver notes, and then change the registered share capital to [-] silver notes in the second year?

"Start a business with [-] silver notes in the second year, save money and then increase the registered capital in a few years?

"You talk about business opportunities. If you don't have a registered capital of [-] yuan, then it's not your business opportunity. It's you who are forcibly increasing risks to seize other people's business opportunities.

"And the insurance company, are you sure the insurance company will look at your contract and not check your registered share capital at the same time?
"The registered share capital is not even the contract amount, how can the insurance company insure you?"

Zhu Dilan is a prince, but even if he is rich, he is still a commoner.

Moreover, Judy Lan had just emerged from society, and her innate sense of justice and discrimination against low morals were still there.

When it comes to this, there are some disgusting accusations:

“It’s true that you still want to speculate but don’t want to take responsibility. Is this what you call the operating difficulties of private manufacturers?

“Don’t you realize that the limited scale of operations protects all businessmen?
“This will prevent you from going bankrupt due to failed speculation, nor will you go bankrupt due to lack of compensation due to limited funds of the cooperative company.

"In the final analysis, you are not willing to accept the fact that you are asked to do business for just one yuan if you have one yuan?
"You just want to use one yuan to do a ten-yuan business, but you don't want to bear the responsibility of ten yuan?

"This kind of thinking sounds good even if it's speculation, but to put it bluntly, it's gambling?"

Lin Haidong instinctively wanted to find a way to refute, but the reasons he immediately thought of were not very tenable.

The key is, thinking about Zhudi Lan's identity, Lin Haidong finally held back.

In order to avoid the awkward situation, I tried to change the topic:
"Your Highness, don't get excited. That's not what I am like. This is just what some businessmen think. It is the nature of businessmen to pursue profits.

“On my own side, I mainly feel that there is no future. The best place for the industry to grow is to be acquired by a government factory.

“The goal of many business owners is to acquire their own firm from an official factory and directly become the management of the official factory.

“In recent years, the number of private factories seems to have increased, but their market share has continued to decrease.

“More and more industries are completely controlled by government factories, and more and more private manufacturers are slowly becoming part of government factories.

“At the same time, some children of government officials and factories have graduated from college and opened their own trading firms, all with this idea.

"This is a shortcut to quickly advance to an official position within the official factory."

The things that Judy Lan cares about are not the same as those that ordinary officials and businessmen care about.

Judy Lan was keenly aware of the changes in the market share ratio between official and private factories.

However, the last thing Lin Haidong mentioned also attracted Judy Lan's attention.

"The children of the official factory start a business outside, and then become a shortcut for promotion within the official factory? What exactly is going on?"

Lin Haidong immediately continued his in-depth analysis and said:
“If the children of official factory workers and managers go to college and graduate, the official factory will usually assign jobs to them.

“It’s just that this job will definitely not satisfy all the officials and factory workers.

“Many people are not satisfied with being a low-level clerk, or even being a steward of the lowest-level manager.

"So there are many officials and factory workers who refuse to be allocated, and then use their family's funds and connections to run private commercial firms and factories.

“The official factory conducts surveys on the market every year to find potential private firms and factories to invest in.

“Many of these business firms owned by officials and factory workers do better than real private business firms, so they can often obtain this kind of equity qualification.

“Once an official factory takes a stake, they become half of the official factory’s management.

"When their scale continues to expand, the official factory may continue to increase its shares until it exceeds [-]% and will be merged into the official factory." Then the original owner of this manufacturer can also choose to join the official factory and become a counterpart Scale managers and stewards.

“Some of the children of the official factory have quickly become middle-level managers of the official factory through this method.

"As for the managers and stewards of official factories, after reaching a certain level, they will have official status and enjoy the same treatment as yamen officials..."

After hearing this, Judy Lan had an inexplicable thought in her heart:

"You specifically mentioned this matter, do you know if there is any problem in it..."

Lin Haidong looked around and lowered his voice slightly:

"No one can say whether the natural connections between Guanchang's children and the Guanchang's internal connections will play a role in the investigation of shareholding and mergers and acquisitions."

Judy Lan immediately felt that there was a hint in this boss's words.

Although this kind of thing is indeed inevitable.

But the problem is, this Lin Haidong himself just complained about his peers and targeted acquisition by an official factory.

If you don't take this as your goal at all, whether there are any problems with the official factory's shareholding and acquisition process has nothing to do with you, right?
You should think that the bigger the problems, the better, because that will improve the strength of the official factory and be beneficial to your own business, right?
So Judy Lan nodded gently and said:

"I will pay attention to these things, but Mr. Lin, would you like your factory to be owned by the four major groups?"

Lin Haidong shook his head directly after hearing this question:
"To be honest with you, Your Highness, I have a hard time making a decision on this matter...

“Now I am more or less independent as a factory, and I have the final say in operation and management.

"After being bought into the company by a government company, I had to abide by the company's rules. After being acquired by a government company, I changed from a boss to a manager.

“The money earned has changed from the vast majority of the profits of the entire factory to part of the stock dividends and wages as a steward.

“The final actual income must have been significantly reduced.

“But after entering the official factory system, future operations and my own industry will be more stable.

“There is no longer a need to worry about the source of goods and customers, there is no need to worry about direct bankruptcy, and there are fewer things to negotiate.

“While being invested in shares and acquired, you can also directly receive a large amount of cash assets, and your future life will be worry-free.

"So I can't make up my mind, and my family is also quite concerned about this matter..."

Judy Lan fell silent after hearing this.

Lin Haidong thought that Zhudi Lan was considering what he hinted at.

There may be corruption in the process of starting a business when a son of an official factory starts a business, attracting the official factory to take shares and acquire the company.

So at this time, I sat still and refrained from moving or making any sound.

What Judy Lan was actually thinking about was not the details of whether there was corruption in the process.

Rather, it is the social significance of the strategy of government factories to continue to invest in shares and acquire private manufacturers.

During the Chinese New Year, when Judy Lan was discussing with her father, she learned the meaning of the existence of private factory owners.

It is to give them independent management and income rights, so that they can use their full capabilities.

But now the purpose of investment of many private owners has become to be bought into and acquired by official factories and then join the management of official factories.

If things like this continue, the market share of the official factory will definitely continue to increase.

The children of official factories go out to start their own businesses, and with their background and connections in official factories, they compete with private manufacturers and seize the market share of private manufacturers.

I don’t know how many private manufacturers will be squeezed out of the market during this process.

Then the part of the market they robbed was taken in by the official factory or even acquired back, and this part of the market became the official factory's.

In the management system of official factories, there is a tendency to actively make room for small-scale manufacturers.

When the sons of government officials start a business and then get acquired, it is like splitting and cutting to add value, circumventing this restriction and tendency.

In the end, the official factory's market share...and its own scale are constantly increasing...

If this trend is not curbed, sooner or later the world may be run by government-owned factories.

Zhudi Lan subconsciously guessed that the continuous expansion of the scale of this official factory was the amount of quantitative change that his father called being accumulated?
When this kind of quantitative change accumulates to a certain extent, and most industries in the world are run by government factories, will it be possible to produce qualitative changes?
At that time, there will be no need for a public market, and all the lives and needs of ordinary people will be under the management and supply of official factories.

Everyone works within the same system to produce a variety of products, which are also available for everyone to use and consume.

Without the public market, the status and significance of money will decline and become like points.

Is this what the father wants now?
But isn't this what I originally considered doing by abandoning private manufacturers?

If so, the current Ming court and the four major groups have the power to achieve this goal.

But the father obviously does not agree to do it now.

This means that the "quantity" my father is accumulating is not the scale of operation and management of the official factory.

The pursuit of qualitative change is not all private manufacturers, it is entirely up to the imperial court and official industrial groups to maintain the lives of the people all over the world.

But something else... something that really needs to wait, really needs time, to slowly accumulate...

Is it the so-called productivity that the teacher talked about?
The increase in productivity means that people can use less unit of labor time to produce more final products.

So what kind of qualitative changes will the continuous accumulation of productivity lead to?

Can anyone just do some work to meet the needs of all people?
At that time, there will be no need to think about how to get some people to work hard and exhaust their efforts to make money and reduce costs.

Naturally, there is no need to worry about whether the annexation of all private manufacturers by government factories and the integration of all industries and people into the official group will reduce production efficiency.

This analysis seems very reasonable...

The rate of improvement in productivity depends on technological innovation and the accumulation of assets.

It requires the correct guidance of the father, the whims of craftsmen in technology research and development, and the hard work of ordinary craftsmen.

I can't seem to do anything...

And with Daming's current situation, it seems that he doesn't need to do anything.

So I don’t need to work hard at all…

Judy Lan suddenly felt relieved.

After all, Zhudi Lan was only a half-grown child, and she had some unexplained things in her heart that she was particularly concerned about, and she kept exploring them as if she were playing a game.

After I figured it out... or after I thought I figured it out, there was nothing left in my mind.

Judy Lan's mental mood quickly became relaxed and happy.

His tone became extremely relaxed, and he continued chatting with Lin Haidong for a while before formally saying goodbye and returning to the Yamen.

Then Judy Lan began to become idle...

Most of the things assigned to him in the yamen can be handled in a few hours.

Then he often toyed with the simulation world in the office.

The computer in Zhudi Lan's office was the one he assembled in Beijing. It was considered a high-end computer.

Originally, I came here to run the simulation world.

Of course it won't be wasted.

If there are many people in the office, or when the factory director is there, he will find an excuse to go out for inspection.

Then go to the computer room to play.

The euphemistic name is understanding people’s lives.

(End of this chapter)