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Capitalism Lab Taking Business Simulation to a New Frontier
Capitalism Lab

Understanding Non-Transferable Firm Types

Most businesses can be bought, sold and transferred between corporations. Four types cannot: software companies, internet companies, banks and insurance companies.

The restriction is deliberate, and each type has its own reason.

Software and internet companies: technology dependencies

These businesses run on proprietary technology developed by their parent corporation. When a firm is transferred, only the physical assets change hands — not the underlying technological capability or intellectual property.

So a corporation without the relevant expertise would end up owning a knowledge-intensive business it has no capability to operate. Rather than allow a tech company running without its core technology, the game blocks the transfer.

Banks: keeping the financial system coherent

A bank is an interconnected network, not a single firm. Branches collect deposits from customers and pass those funds to headquarters.

Transfer a branch or a headquarters separately and that flow breaks: a customer’s deposits would sit with one corporation while the branch they withdraw from belongs to another.

Insurance companies: operations and regulation

Insurance companies have the same integrated structure as banks, plus one complication of their own — they invest in stocks.

If they could be transferred, two closely related business entities could end up holding shares in the same companies, which the game treats as a breach of its simulated securities regulations.