This would be very deep to a 12 year old.
That’s not correct, not even a little. How would a company stay afloat without reinvesting profits into themselves. At the very least, they have to keep their equipment working.
Or growth? Does every company need to stagnate soon as they are developed and never grow or change?
If a company spends money on itself, that money isn’t profit. Profit is the money left over which the business has no better use for (usually decided as being excess by people who will share in the profit when it is distributed)
And this line of thought is one of many ways how companies avoid taxes despite raking in ungodly amounts of money. Instantly throwing “all” that potential profit into expansion.
‘We didn’t make any profit for the past 5 years. Yes, we have grown the company 5000% since we started but we’ve made no profit, so wages will stagnate. In fact, we might have cut some positions if the stakeholders don’t see some profits soon.’
I was under the impression that investing in your employees counts as investing in your business.
If people do their jobs so well that a company is raking in profits they deserve a raise.
That’s how the job I work at functions. It’s smallish company, but we get more raises for being competent than our larger, more established competitors give… so I’ll be staying at my current place of employment since they treat us like people.
