piclist 2007\03\23\093102a >
Thread: was [EE] Small-Production PCB Manufacturer Experiences.
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face picon face BY : Alan B. Pearce email (remove spam text)



>Just to clarify how I understand it (this may help understanding
>my posts): I consider "profit" in this discussion all the money
>that real people take out of the business: workers' salaries,
>investors' dividends, and, yes, CEO salaries :)  This includes
>also growth of the company's assets. In a way, taxes paid and money
>given to charity are also part of the generated profit, in that
>this is money that benefits (in theory, at least) the community.

I wouldn't include wages and salaries as part of the profit, these are
expenses involved in generating the profit. They also appear in some
non-profit organisations. If there are any profit dependant bonuses to be
paid out, then these are not an expense in returning a profit, but a part of
a dividend payout (the dividend being against the work input instead of
money invested).

>There's still the period question. But then, the original question
>was about intent, and there the period is the one used by the intent.

Well, to me the period is whatever period the dividend (or where-ever else
the profit goes) is paid over. So for a company trading "profitably" it
would normally be regarded as a year, although they may pay one or more
interim dividends within that year, but could also be taken as, say, 5 years
for a start up to go from setting up to turning in an annual profit, some of
which will be offset against the lack of profit during the setup time. But
during the time when it is not returning a profit on investment it may well
still be classed as profitable while the losses are getting less, provided
it has enough capital to get to the point where it does provide a return on
investment.

<0cb101c76d4f$7d283720$1979f682@space.rl.ac.uk> 7bit

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