2006-08-07 13:54:14 · 5 answers · asked by jam 1 in Business & Finance ➔ Corporations
Because a salary is part of the running costs of the company. Profit is what is left after all the costs have been accounted for
2006-08-07 13:58:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
This means a company is not making a profit. They still need to take in money to cover costs. Light bills still need to be paid, just like water bills, phone bills, etc. And the people who work in the company don't do it for free, either. So they get paid and get a salary. Usually the pay in non-profits is not as good as in the for-profit sector, though.
2006-08-07 14:01:12 · answer #2 · answered by kako 6 · 0⤊ 0⤋
Wrong, wrong and wrong.
A non-profit company is NOT necessarily one that is run at a loss. It is a company that has received a 501(c)(3) letter from the IRS that allows it to receive contributions tax free.
As any business, it must pay its employees and vendors... unless the people really want to work for free.
2006-08-07 14:33:00 · answer #3 · answered by TheSlayor 5 · 0⤊ 0⤋
non-profit companys still have operating budgets--because they know most people can't work for free....the key word is non-PROFIT!! as long as their operating without making money they are ok
2006-08-07 13:59:53 · answer #4 · answered by f4fanactic 6 · 0⤊ 0⤋
yes
2006-08-07 13:57:53 · answer #5 · answered by noitall 3 · 0⤊ 0⤋