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No, not if it's dividends, as I mentioned. Dividends are paid out of profits.
by robertlagrant 3y ago
No, not if it's dividends, as I mentioned. Dividends are paid out of profits.
- redcobra762 3y agoBut it's not dividends, it's increased salary, so it's still not net profit, it's pre-operational profit, which nobody looks at due to the importance of paying for labor.
- robertlagrant 3y agoI said this: > That's still profit. It's just the profit is paid as dividends to workers. How is that not dividends?
- redcobra762 3y agoBecause dividends are payed to shareholders, not for labor. It’s not net profit if it’s not accounting for the cost of labor.
- robertlagrant 3y agoWorkers can have shares in a business, which is the hypothetical I was going for originally.