Purchase Solution

Profits and the Corporation

Not what you're looking for?

Ask Custom Question

Realizing that the major function of profit is to allocate resources according to consumer preferences, why are some groups in the U. S. extremely critical of corporations that earn growing profits? Is this criticism a function of large CEO salaries or is something else driving these attacks?

Purchase this Solution
Solution Summary

Profits and the corporation are analyzed in this tutorial.

Solution Preview

Profits and the Corporation:

A profit is a financial gain that is obtained due a monetary advantage made by the organization. The goal of every organization in the business market is to attain exceeding profits that will boost the operations of the company. Effective techniques have to be employed by the company for the high profits to be attained. Contrary to this, some organization have the negative habit of focusing their attention on the making of organizational profits that they end up neglecting the employees, shareholders and even the important needs of the esteemed clients (The profit, 2011).

Reasons for Criticism:

Organizations that earn a lot of profits are mostly under great scrutiny by some groups in the United States. This is based on the fact that most of those organizations create a lot of environmental damage in their quest to make ...

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Earnings and Profits - Computation and Corporation

    What difference do earnings and profits make to a corporation? To the stockholders of a corporation?

  • Type A Reorganization

    According to the Internal Revenue Code (IRC), the acquiring corporation assumes the assets and liabilities of the acquired corporation, which include their current profit or loss.

  • E&P, earnings and profits, stock redemption, attribution

    The corporation's current earnings and profits for 2010 would be 18- Au Sable Corporation reported taxable income of $800,000 in 2010 and paid federal income taxes of $272,000.

  • Business Structure from a Tax Perspective

    Moreover, since the company is expanding and is making profits and is likely to make profits in future, a C corporation would lead to double taxation.

  • Basis of S corporation Shareholder

    Some recent developments that deal with the calculation of the S corporation shareholder's basis are the S corporation and the alternative minimum tax (AMT), shareholders advance money to the S corporation as a loan and S corporation record keeping that

  • Philosophies of non-profit organizations

    The second difference, which explains the first, is ownership of the corporation. A for profit corporation is created when investors get together and transfer assets, money and/or talent to start the corporation.

  • A for profit corporation

    This may not be the case in that for profit organizations have a different agenda than not for profits in that for profit organizations pay taxes on remaining profits at the end of the year so it is wise to spend these profits and reinvest in the organization

  • Art, an executive with Azure Corporation, plans to start a p

    He projects substantial losses from the new business in each of the first three years and expects sizable profits thereafter. Art plans to leave the profits in the business for several years, sell the business, and retire.

  • Equity and Ownership Questions

    This means that all of the profits and losses of the partnership "pass through" the business to the partners, who pay taxes on their share of the profits (or deduct their share of the losses) on their individual income tax returns.

  • Business Structure: Differences

    Step 1 A limited liability corporation gives limited liability protection to owners and members, and the profits go direct to the members. The LLC has the advantages of both a corporation and a partnership.

View More Related Solutions