how or why does a company generate excess profits
2007-03-21 14:19:44 · 4 answers · asked by Raymond B 4 in Business & Finance ➔ Corporations
more than needed
2007-03-21 14:23:37 · answer #1 · answered by kelser4u 2 · 0⤊ 0⤋
Think about it ! If you had a corp. would you have excess profits? What, you only get 10% and the rest you throw away? When they say excess profits they are refering to stealing from someone "ESCHEAT" ! The person who had the stocks,property,accounts can not be found, nor the heirs ! Which can lead to crime ! example this man has 1.2 million in stocks, lets knock him off and then the stocks can be ESCHEATED! We do not see these things because we do not have a criminal mind! The word es/cheat is pretty much self explanatory "THIEFS"
2007-03-21 23:50:15 · answer #2 · answered by B R H 3 · 0⤊ 0⤋
There is no such thing as "Excess" profit. A corporations main goal is to create wealth for its shareholders. Corporations accused of "Excess" profits are those that generate high profits in natural rescources, which are accused of excessive profits by socialists, communists, green partiers, and other liberals who just like to call said profits 'immoral."
2007-03-21 21:25:12 · answer #3 · answered by stick man 6 · 2⤊ 0⤋
There is no such thing as "excess profits" in a capitalist economy. Companies exist to create as much value for their shareholders as possible. For a more in-depht analysis of the basis of modern macroeconomic theory than you could ever get here, I suggest reading "The Wealth of Nations" by Adam Smith.
2007-03-21 22:58:57 · answer #4 · answered by TheorenF14 2 · 1⤊ 0⤋