4 ms·
OK, say it costs $5000 up front to do the initial print run. Then you earn $35,000 in revenues, leading to $30,000 in profit. You could simply pay out the $30
by lambda 17y ago
OK, say it costs $5000 up front to do the initial print run.
Then you earn $35,000 in revenues, leading to $30,000 in profit.
You could simply pay out the $30,000 to the charity you provide the profit to, and end there.
Or, you could pay $15,000 to the charity, and use the rest of the money as an investment in a future print run, allowing you to then later donate $22,000 to the charity.
Many of the profits that a corporation makes aren't directly paid back to the stockholder in the form of dividends. Instead, the company keeps the cash on hand, essentially investing it in itself, in order to use it to create larger profits later.
That's the way I read it anyhow. I could be wrong.