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
- Corporation, Economics terminology, 11/09 Ownership