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Unformatted text preview: stock holders/share holders. profit=corporate profit. Corporation profit tax special tax for corporations Extra profit is after tax corporation profit and may be paid as dividend Some is kept by the corporation as retained earnings) People can sue single-owners, partnerships, and corporations, but they cannot sue the stock holders of corporation Stock holders can receive dividend checks and the shares can raise in value Profit Accounting = total revenue - explicit costs Pure Economic = TR (explicit and implicit cost) they mean economic profit unless they specify otherwise Normal = implicit cost (amount of money you need to earn to stay in the business) Relationship- economic = accounting normal You break even when economic profit is zero, you have income though...
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- Spring '08