Should more be required of corporations than to just turn a profit?
814343
You've hit a nerve with me on this question as I'm currently dealing with just such a question.  Business is business and the number one priority is to provide a profit, however when corporate greed takes such a priority over even the most basic ethics, it has gone too far.  \n\nWe have discovered that Meineke Car Care knowingly sold a convicted sex offender (Rape) a franchise.  When contacted about this, they put in WRITING that they not only knew about his conviction but don't feel it's a problem because it happened in the 90's.  WHAT are these people thinking?  Doesn't a company have an obligation NOT to put their customers in the position on handing over their personal info & keychains or taking a ride home from a convicted sex offender?  Did the recent lawsuits about the attacks on a customer and employee at Walmart & McDonalds teach companies anything?  At least they had the luxury of not knowing the employees history. How could Meineke defend this?
763723
It looks like you can make your own definition, and how you want your profit to look.\n.
917273
To make profit for their shareholders, no other reason.  That is why any business is started.
237701
It depends upon company to company.
709638
Why should it be?\n\nThe parent company should not be responsible due to the fact that even though it is a parent company, they are still 2 different companies.\n\nYou cannot bankroll a company to keep it going just because it is a smaller company, if a company isn't making money, it's to be closed.\n\nThe parent company basically is responsible for the creation of the company, and it can use some of it's resouces to help it out, but what's the point of keeping the company if it's making a loss, must be closed.
386940
yes it is a good idea to set up PTY LTD. \n\nNo need at least two people. \n\nits true, profit and loss statement required.
673683
Yes, because a small change in price will affect demand more.  If a product is inelastic, then the firm can charge just about anything and the demand will stay the same.
141927
The biggest thing is that privately owned companies can make a profit. Also, there are no publicly owned companies, strictly speaking, just departments of government.
743493
Er......I think if you were starting a business where you expected to pay 40% income tax on top of corporation tax, you would know the answer to this?\n\nAnd the odd thing is, usually people who put on daft questions like this try to make them vaguely funny..................\n\nSorry - maybe I'm just not in the mood.
1002026
I would encourage people to try to not be dependent on corporations and try to start a small business of their own in something they are really interested in. Then I would make it easier for people to do this by taking away self employment tax and less easy on corporations.
1036019
Perfectly optimal, not really.  That's just in textbooks where everyone has perfect information and the rest of the unrealistic assumptions.  It's possible to have a highly efficient firm, though, where it is always trying to cut costs and increase revenues as much as possible.  Where humans are involved, there's a lot of room for non optimal results.
796946
I must admit that, although I used to work in corporate finance, I have never heard the phrase 'profitability ratio'\n\nHowever, I would have thought it was a percentage of a company's turnover compared to its profits.   If a company turns over £100 (ie, what it gets for selling its goods) and makes £5, the profit would be 5%.   As a ratio, this would be 1:20   (and I am aware that no company turns over just £100 before anyone complains! - I just like nice easy numbers!)\n\nYou could also do the same for individual items.   However the two are not necessarily the same!\n\nIt costs a company £80 to make a car and it sells for £100, the profit would be £20.   This is 20%, or a ratio of 1:5.\n\nHowever, the company may have a turnover of £1,000 but make a profit of £250 because of things like property sales, selling spares and so on.   Here, the profit rate is 25% or a ratio of 1:4.\n\nThe only way to use such a ratio to see if it is a good company is to compare it to the industry average.   If the average for making a car is 5% or 1:9, then the company is doing well.   However, if the average is 33% or 1:3 then the company is doing badly!\n\nI am sure this is now as clear as mud for you!!!   But I wish you all the best!
870846
Do you mean, "What's better"?  It depends. Are you moral? Then validity is more important. Are you a greedy, no-conscience pig? Then obviously profitability is more important. \n\nTake the drug companies, for example. A good number of them are clearly more interested in profitability than in validity.
44012
I think it's great that corporations are making social responsibility an integral part of their agendas.  Corporations play such a big role in our communities by providing jobs, it's only natural that they extend that role to other areas in the community.  For example, if you have a company that wants to ensure the pool of quality job applicants, that company may invest in the local school system by providing scholarships.  Or if a company knows it has the resources and wants to get some positive publicity, it may contribute to environmental protection measures.  In essence, whatever the company does for its community will come back to them in the form of better employees and more customers.  In the end, both the community and the company win.
428478
so they can be more profitable
402368
Big corporations give big money which then requires elected officials to push policies that promote the needs and wants of the companies.  If an elected official had to have a bake sale to pay for the elction it may change how they vote on major issues such as medical care and recycle... no large companies pulling the strings and a politition may actually have to think for himself.  WOW!  A congress person who had to think for themselves.  What a world.
923883
No, I don't see how a for profit business is really going to help much without more of an explaination.