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Profit |
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Profit
Profit. Profit, which is also called net income or earnings, is the money a business has left after it pays its operating expenses, taxes, and other current bills. When you invest, profit is the amount you make when you sell an asset for a higher price than you paid for it. For example, if you buy a stock at $20 a share and sell it at $30 a share, your profit is $10 a share minus sales commission and capital gains tax if any. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Felix Barber and Rainer Strack of the Boston Consulting Group devised a means of reformatting a traditional measure of economic profit to one that is meaningful for people-intensive businesses. The taxpayer's objective must be to achieve an economic profit independent of tax considerations" (George Gianaris, TC Memo 1992-642). The present value of future compensation will be sensitive to current shareholder return if stock and option grant guidelines provide for a fixed number of shares or the bonus plan gives managers a fixed percentage interest in economic profit or economic profit improvement. |
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