Quote:
Originally Posted by Alf
As of July of this year it had made £900m, according to The Guardian, is none of that profit?
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If all net profit goes back into research and development (facilities, equipment, staff, manufacturing centres) etc. then it does not become gross profit. When people talk about “non profit” they mean that individuals/owners/shareholders are not making a private profit from that company (beyond their salary). For example I work for a very small non-profit independent organisation, it’s obviously not that there’s “no money involved”, but all income goes into salaries, pensions, office space and equipment etc. and then any surplus is used to either host events (pre-covid that is, we haven’t gone back to doing any physical events yet) and growing the company. So basically it means that bigger profits one year doesn’t mean that any individual ends up with more money in their bank account.
Welcome to GCSE economics with Toy Soldier.