Microsoft's Bulk Deal With New Zealand Collapses

Discussion in 'NZ Computing' started by victor, May 26, 2009.

  1. victor

    David Empson Guest

    That's not correct.

    Profit is the money left from income after all expenses are paid.

    Salary and wages are expenses, so the profit does not go to pay wages.

    A company's profit typically goes to the shareholders (investors in the
    company), e.g. in the form of dividends, or is reinvested by the company
    in some way, e.g. to pay off debt, buy assets, or simply put in a bank
    to earn interest.

    Some of the employees of the company will also be shareholders (Bill
    Gates was a notable example in the case of Microsoft), so they get their
    salary or wages (after tax), plus any dividends from the profits based
    on their share of the ownership of the company.
     
    David Empson, Jun 3, 2009
    #21
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