Shutting Down

When it is time to close the doors the assets in the business should be sold and debts repaid. If there is any cash leftover it should be distributed in the following order:

  • Grunts that put in cash or cash equivalents should be paid back in an amount equal to their contribution. This payback will not diminish their equity holding, however (if it matters).
  • If there is not enough cash to cover the cash contributions then payments in proportion to the cash contributions should be made. So, divide an individual Grunt's cash contributions and divide by the total cash contributions and give them that percent of the leftover cash.
  • If there is any cash left over it should be distributed to all the Grunts according to their percent of equity.

The goal is to make everyone as whole again as possible. Legal creditors (including personal credit cards) always get first rights to the cash. Anyone who put in cash took larger risks and care should be taken to preserve their cash.