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greater then economic profits,as accounting profits do not include implicit costs
Profits = revenues - expenses
many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term
In a sole proprietorship, the individual owner retains all profits. In a partnership, profits are shared among the partners according to their agreement. In a corporation, profits are distributed to shareholders in the form of dividends, while the corporation itself also reinvests some profits for growth. In a limited liability company (LLC), profits can be distributed to members according to their ownership percentages or as outlined in the operating agreement.
economic profits in a industry suggest the industry
* a private sectors aim is to maximise profits or increase market shares. * they set objectives to be able to acheive it * for instance to advertise more attractive things
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SmartShop's profits have been growing at 5% per year. This year their profits were approximately $500,000. What were their profits last year?
Bottom-line profits
greater then economic profits,as accounting profits do not include implicit costs
The answer depends on the period for which the old profits are required.
The company's profits decreased by 12%
They recieved few profits
Profits = revenues - expenses
475000
Also referred to as paper profits. They are profits that appear on you P&L. Whether they are real or not is a different topic.
Profits - Expense = Savings and Investment Profits keep a business going as long is it is more than expense.