4 ms·

Annual P&L report should suffice.

• giantg2 3y ago
  You'll want it to be generated or audited by a 3rd party. You also have to agree on what defines profit in this case. The company might claim an overall/layman's loss because they reinvested or spent the profit on something else.
  • bruce511 3y ago
    Unless you want voting rights on how to spend all the money (which you can't have) the accounts, audited or not, are meaningless. Businesses make 100 decisions a week on spending money. All of it comes out of "profit". Most of it is necessary. Some of it isn't. Some is ultimately wasteful but 'seemed like a good idea at the time.' Some is there to reduce profit so to pay less tax. (In good years it's legitimately good to replace ageing equipment, do repairs, pay staff bonuses and so on.) In essence, by taking a profit share you are committing to be paid -last- the lowest priority of all. It's a terrible idea. If you want variable returns it has to be based on -revenue- and even then you're relying on the customers goodwill.
    • giantg2 3y ago
      I agree that revenue is a better measure, but I'm specifically addressing the statement around profit. If they do go with profit, some risk can be mitigated depending on how you define profit (what values it's coming from on the income statement for cost of goods sold vs all operting expenses, etc).