Snivelling about capitalism... wasPrimaryinterface
26 Oct 2006 - 2:56pm
7 years ago
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.
>[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