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[–] 61 points 3 years ago (9 children)

Profits are unpaid wages, change my mind.

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  • [–] 3 points 3 years ago

    I agree with this statement but thought I'd have a go at challenging it just for fun. The nature of profits and wages is relative to whether or not a business model requires workers to make profit. For example some companies make money off of owning the result of a worker's labor (patents, software, creative work etc) rather than their ongoing labor. So while not all profits are necessarily unpaid wages, they are still dependent on the exchange of labor.

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  • [–] -5 points 3 years ago (3 children)

    Profits can go to cover capitol expenditures on your business as well. And there's nothing wrong with that.

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  • [–] 31 points 3 years ago (2 children)

    Profit is what's left of revenue after expenses are covered.

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  • [–] 2 points 3 years ago (1 child)

    And capital expenditure isn't necessarily an expense in the accounting sense. CapEx comes from previous profit

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  • [–] 4 points 3 years ago

    It's an asset charged as a fixed expense, depreciated over time. It is an expense, generally property or equipment, but still is an expense, which is defined as money spent in pursuit of revenue, which is determined before profit.

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  • [+] -6 points 3 years ago (3 children)

    Profits can be used to expand the business and hire more employees

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