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What do companies do with profits?


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It's a straight forward enough question. What do you think companies do with profits?

 

Oh come on, you must know this stuff!

 

If not, then why bother us with it rather than read up on it for yourself? You have the biggest encyclopaedia the world has ever seen, right at your fingertips. Use it to educate yourself.

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Aside from the usual acidic Labourite views, Most companies prefer to reinvest profits, it is this which drives economic growth (and avoids paying taxes). Once a company gets to be rewarding for investors (shareholders), they will expect some return, either through dividends (rare) or through smart investments that grow the value of the company.

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Not always. A company can decide to retain the profit amd use it to pay off debts, invest, improve its finances, cash joldings, buy back shares etc. A company like Apple is notorious for having grown its share value by vert limited divident payments and having a massive cash warchest.

 

Its not profit though in the above cases. A Ltd company has to do its tax return each year and the profit is then taxed (In the UK). Other countries will have different systems but I doubt the OP was wanting to know about the tax arrangements of Azerbaijan.

 

The warchests you allude to have been taxed already be it in the most efficient manner possible.

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Then be specific.

 

And stop writing posts over

 

Three lines. It's daft :hihi:

 

I'll do

 

Whatever the hell

 

I please :D

 

Get over yourself :loopy:

 

---------- Post added 16-01-2016 at 21:42 ----------

 

why should it ?

 

Because filtering money to the few

 

At the top of a loaded pyramid

 

Whilst the rest of us suffer in poverty

 

Is unnecessary and obscene :gag:

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