"Debenture, Inc." provides various public services and usable products, some more popular than others. It is heavily invested in infrastructure and has the best security team in the world. Debenture, Inc. owns a lot of real estate which includes a wealth of natural resources. Its work force is considered one of the best in the world, and its hardest workers are rewarded very well.

Continued...

The 'workers' even get to keep most of the fruits of their labor. Debenture, Inc. even has its own private space program!

So far, so good.

Debenture, Inc. invests heavily in its divisions which are failing miserably, while simultaneously limiting their ability to trade in the free market. They impede incentive by subsidizing their less-productive workers by keeping a higher percentage of what they're best workers make. Debenture, Inc. has small programs to research swine odor and to help its less valuable workers get their tattoos removed. They're even building a $2,000,000 monument to one of their executives who is currently being investigated for both legal and ethical violations.

OK, so no business is run perfectly. Let's take a look at their finances:

Debenture, Inc. made $100,000 per year in net income last year. They have the option to give themselves a short term raise in their net income by restricting their employees' wages, but this comes only with the risk of a future reduction in both net and gross revenue. In case you're interested, Debenture's estimated gross income last year was about $567,000.

Unfortunately, Debenture Inc. is in a bit of debt, amounting to about $446,000. Roughly half they owe to their employees, who depend upon it for insurance and retirement. The other half is owed to other companies. Yes, Debenture, Inc. is paying interest on their loans.

Debenture, Inc. has been profitable in only four of the last forty years.

Even though its net income was $100,000 last year, Debenture Inc. spent about $118,000. Next year, despite having a rough business year, it is expecting to spend even more - about $142,000.

Last time I checked, Debenture owned about $9,700 in gold.

Interestingly enough, Debenture, Inc. does have room to tighten its belt. A little over half of Debenture's expenses are mandatory. If they absolutely had to, they could theoretically reduce their spending to about $62,000. Still, even without including the interest they have to pay on their loans, at this rate it would take 15 years before the company could become profitable.

Ready to invest?