Archive for August, 2010

What Happens to Profit?

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This is from here

Profit is vital for the well being of businesses and also the functioning of the economy.

The distribution of profit will depend on a number of factors

1. the objectives of the business (to grow or remain in a similar position)
2. the type of ownership (does it have shareholders)
3. the amount of profit made

How is profit distributed?

Taxes :

Approximately 25% of all profits are paid to the Government in tax. This is usually called corporation tax

Day to day running

Some profits are retained in order to ensure the well being of the business in future years. For example, a recession may be feared and the business needs to ensure that it has enough cash / assets to survive and pay its essential bills


A limited company will be expected to share some of its profits with its shareholders. These ‘thank you’ payments are called dividends. This is perhaps more important for a plc than a ltd.

Re investment / ploughing back

Profits may be used for investment into the future of the business. Examples include machinery, new factories or general expansion. This is also an important contributor to economic growth in the UK

Over to you ACTION

A Imagine that you owned a chain of shops as a limited company. In 2001 you made £50,000 profit. How would you choose to distribute the profit?

Questions to get you an A grade SMART THINKING

B Why might it be more important to pay out dividends as a plc (public limited) rather than a ltd (private limited).

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Marines’ Hymn

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This is the U.S. Marines' Hymn. I didn't know it was the U.S. Marines' Hymn until within a year ago. I knew the tune and basic structure of the song, though, because I had learned a parody of it in grade school. The parody is below the original. "… Then to keep our desks a mess …" It's good to have goals.

From the Halls of Montezuma,
To the shores of Tripoli;
We fight our country's battles
In the air, on land, and sea;
First to fight for right and freedom
And to keep our honor clean;
We are proud to claim the title
Of United States Marine.

Our flag's unfurled to every breeze
From dawn to setting sun;
We have fought in every clime and place
Where we could take a gun;
In the snow of far-off Northern lands
And in sunny tropic scenes;
You will find us always on the job
The United States Marines.

Here's health to you and to our Corps
Which we are proud to serve;
In many a strife we've fought for life
And never lost our nerve;
If the Army and the Navy
Ever look on Heaven’s scenes;
They will find the streets are guarded
By United States Marines.


From the halls of the principal's office
to the shores of Bubblegum Bay.
We will fight our teachers' battle
with bricks and sticks and clay.
First to fight for lunch and recess,
then to keep our desks a mess.
We are proud to claim the title
of Teacher's Number One Best Pest.

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M.I.A. Exposed – Terrorist Supporter

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I really like the song "Paper Planes". Great groove, but was never clear on the message. I'd heard of her affinity for the Tamil Tigers before, but this breaks down her affinity for them and who they are pretty well.


h/t to Ace of Spades

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