Snivelling about capitalism... wasPrimaryinterface

26 Oct 2006 - 2:56pm
8 years ago
1 reply
345 reads
Mark Schraad
2006

This is flat out incorrect. Depending upon the phse of growth and maturity a business is in, it may very well not be profitable or have profit as its major concern. All businesses keep an eye on the "taxible" profit and seek to limit that liability but not at the risk of long term gains and shareholder interests. It is a rare business strategy that seeks to avoid profitability.

Investments in quality, r&d, service as well as infrastructure can reduce short term revenues and profits. But they are typically in the interest of long term customer loyalty and the ensueing market or revenue gains. In the large corporation, there are plenty of ways to mitigate taxation without compramising shareholder value.

Mark

On Thursday, October 26, 2006, at 04:15PM, Lorne Trudeau <lorne.trudeau at number41media.com> wrote:

>[Please voluntarily trim replies to include only relevant quoted material.]
>
>"Businesses ... ONLY want to maximize profits."
>
>Actually, that's not true at all. Maximizing profits is the most
>efficient way of maximizing your tax burden. Businesses generally try to
>maximize growth while minimizing profit.
>Profit/capital accumulation is usually used as a risk mitigation
>strategy (think Microsoft).
>Lorne

Comments

26 Oct 2006 - 6:35pm
jbellis
2005

Lorne,
Oh, great example of profit motivation, a company that already has $50B cash
on hand. Are you serious?
Jack
----- Original Message -----
From: "Lorne Trudeau" <lorne.trudeau at number41media.com>

Actually, that's not true at all. Maximizing profits is the most
efficient way of maximizing your tax burden. Businesses generally try to
maximize growth while minimizing profit.
Profit/capital accumulation is usually used as a risk mitigation
strategy (think Microsoft).

Syndicate content Get the feed