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	Profit - Wikipedia, the free encyclopedia
		Profitability refers to the amount of profit received relative to the amount invested, often measured by a rate of profit or rate of return on investment.
		Once risk is accounted for, long-lasting economic profit is thus viewed as an inefficiency caused by monopolies or some other form of market failure.
		The underlying concept was first been introduced by Schmalenbach, but the commercial application of the concept of adjusted economic profit was by Stern Stewart and Co. which has trade-marked their adjusted economic profit as EVA or Economic Value Added.
	en.wikipedia.org /wiki/Profit (808 words)

	Profits Perspective_What Is It
		The foundation of the profits perspective is the equation for total business sector profits, which is also called "the profits identity." On this foundation is built a broad, adaptable view of the economy that highlights the economic activities that determine the magnitude of total business sector profits and the influence of profits on subsequent activities.
		Economics, as popularly practiced, ignores the questions "What determines the flow of net profits to business?" and "Where do profits come from?" A great mystery in the development of modern economic thought is the conspicuous absence of profits from the study of macroeconomics.
		Thus, the profits approach facilitates analysis of the effects of economic activities on household, corporate, and government balance sheets and conversely, the impact of changes in balance sheets on profits and economic activity.
	www.levyforecast.com /page2_2a.htm (795 words)

	Boyes/Melvin Chapter Overview and Strategies
		Negative economic profit: Negative economic profit means that a firm's resources would have a higher value in another use.
		Zero economic profit: A firm that neither adds value nor subtracts value is one with a zero economic profit, or a normal accounting profit..
		Positive economic profit: If a firm is returning more to its owners than the owners' opportunity cost, the firm is said to be earning positive economic profit.
	college.hmco.com /economics/boyes_melvin/shared/faculty/chov23.html (1041 words)

	Microeconomics - Chapter 9
		If the owners of a firm economic profits, this means that they are receiving a rate of return on the use of their resources that exceeds that which can be received in their next-best use.
		If a firm is receiving economic losses (negative economic profits), the owners are receiving less income than could be received if their resources were employed in an alternative use.
		If the owners of a typical firm receive zero economic profits, this means that they are receiving an income that is just equal to what they could receive in their next-best alternative.
	www.oswego.edu /~economic/eco101/chap9/chap9.htm (1817 words)

	Econoday Reports - Corporate Profits December 22, 2004 (Site not responding. Last check: 2007-11-07)
		Corporate profits, as reported by the Bureau of Economic Analysis (BEA), are summarized briefly as the income of organizations treated as corporations in the national income and product accounts.
		Profits from current production (corporate profits with inventory valuation and capital consumption adjustment), are also known as operating or "economic" profits.
		This is a downward revision from the preliminary estimate.
	mam.econoday.com /reports/US/EN/New_York/corporate_profits/year/2004/yearly/12 (344 words)

	GP Solo & Small Firm Lawyer - January/February 1999 (Site not responding. Last check: 2007-11-07)
		Ignoring the economic concepts as incomprehensible tax boilerplate is a mistake because the economic structure of an organization controls not only taxes but also how the owners share in the economic results of the organization.
		As profits and losses increase or decrease capital accounts, the profits and losses are allocated in accordance with the agreement so that when the organization is liquidated, the amounts distributed to each owner would continue to reflect the owners’ agreement.
		Profits and losses will be credited to or debited from capital accounts, and liquidating distributions will be made in accordance with the capital accounts.
	www.abanet.org /genpractice/lawyer/complete/99jankeatinge.html (3409 words)

	Econoday Report: Corporate Profits 30, 2005
		Year-on-year after-tax corporate profits rose a preliminary 12.2% in the fourth quarter vs. the third quarter, at a seasonally adjusted annual rate of $762.1 billion (the figure excludes inventory and capital consumption adjustments).
		Third-quarter profits were depressed by the period's string of hurricanes.
		Corporate profit data, which lag company reports and Wall Street estimates, are not market-moving, but they do confirm that corporate health, thanks to strong demand and high worker productivity, remains strong.
	premium.econoday.com /reports/US/EN/New_York/corporate_profits/year/2005/yearly/03 (322 words)

	Global Insight // Our Perspective
		Profits in the U.S. economy rose at their fastest rate in 20 years in the fourth quarter of 2003.
		The profits jump reflects a combination of strengthening GDP growth (4.3% fourth quarter to fourth quarter), declining unit labor costs (down 1.7% fourth quarter to fourth quarter), and low interest rates.
		For the calendar year 2003, economic profits were up 18.3%, passing the $1 trillion mark for the first time ($1070 billion).
	www.globalinsight.com /Perspective/PerspectiveDetail853.htm (559 words)

	Lecture: March 24
		Economic profit is defined as total revenue minus explicit and implicit costs.
		Note that the definition of normal profit in the margin of the text on p.
		When we say that competition tends to drive profits to zero, we are talking about economic profits....this is the delectable stuff that attracts other producers to the industry....
	www-unix.oit.umass.edu /~folbre/econ103/Lectures/lect3_24.htm (769 words)

	Lecture 15 Notes (Site not responding. Last check: 2007-11-07)
		This is called a normal profit and simply means that the firm earned as much in this line of business as it could have earned in some other line of business.
		A firm can earn a positive accounting profit but negative economic profits if it could have earned a greater return in some other line of business.
		Positive economic profits (or above-normal profits) result when the business earned a greater return in this line of business than it could have earned elsewhere.
	www2.yk.psu.edu /~dxl31/econ2/lecture15.html (503 words)

	OECD Glossary of Statistical Terms - Profit (Site not responding. Last check: 2007-11-07)
		Economic profits are not the same as accounting profits.
		For purposes of competition policy, the problem is that positive economic profits may (but not necessarily) indicate the existence of monopoly power.
		However, economic profits are not observable and use must be made of accounting profits.
	cs3-hq.oecd.org /scripts/stats/glossary/detail.asp?ID=3288 (211 words)

	[No title] (Site not responding. Last check: 2007-11-07)
		Entrepreneurs are alert to "opportunities" which presumably involve potential economic profits in disequilibrium states of the world.
		Economic profit is zero when a firm is making a normal profit.
		Normal profit is the case where total revenues of a firm a just sufficient to cover all costs (both explicit and implicit).
	www.spelman.edu /~jstone/e301-991/comhw1-spring2003.html (499 words)

	Northern Trust Economic Research
		Economic profits are those emanating from current production or operations.
		The various economic profits series are calculated by the Commerce Department using IRS underlying source data.
		To capitalize profits, I divided expected profits for any given quarter by a bond yield (actually, the bond yield divided by 100) that obtained for that given quarter.
	www.ntrs.com /library/econ_research/weekly/us/020614.html (625 words)

	Understanding Economic Value Added
		Economic Profit Is Free Cash Flow "Sliced Up" Financial theory - that is, the discounted cash flow (DCF) model - says that the intrinsic value of a firm equals the present value (also known as "discounted value") of its future free cash flows.
		Economic profits represent the portion of free cash flows after a capital charge is subtracted.
		In this example, the future economic profits (which we're lucky enough to know) is discounted to a present value of $20 as represented by the tall green bar stacked on top of the dark blue bar, which represents the invested capital portion of $20.
	www.investopedia.com /university/EVA/EVA1.asp (1666 words)

	[No title]
		Economic profits are positive and are between p* and ATC* for all Q* units.
		The economic profits will not persist in the long run since there is free entry in monopolistic competition.
		The positive economic profits would have existed in the long run if there is no entry of firms.
	www.mtsu.edu /~cbaum/242topic10.doc (1959 words)

	CHAPTER 21 (Site not responding. Last check: 2007-11-07)
		Economic rent is a payment for the use of any resource over and above its opportunity cost.
		If any after-tax profits are distributed to shareholders as dividends, such payments are treated as personal income to the shareholders and subject to personal taxation.
		Economic profits are the difference between total revenues and the sum of explicit and implicit costs, while accounting profits are the difference between total revenues and explicit costs.
	www.coco.cc.az.us /pholbrook/ecn_205/Chapter_notes/CHAPTER21_notes.htm (1258 words)

	Lecture- Oct. 21
		examples of how the search for profits helps explain the transformation of our economic landscape here in the valley—from the effect of competition from grain farmers in the Midwest in the late nineteenth century to the growth of exports from China.
		But the economic profits represent a "surplus"–an extra–the gravy–the whipped cream and cherries...
		But what the scandals of the last year have shown is that accounting profits are not so easily pinned down–they can be affected by a number of rules, conventions, misrepresentations.
	www-unix.oit.umass.edu /~folbre/econ103/2002fall/lect10_21.htm (1228 words)

	Bloomberg.com: Bloomberg Columnists
		Aug. 15 (Bloomberg) -- When the Commerce Department reports on second-quarter corporate profits on Aug. 28, its measure of economic profits, or profits from current production, is likely to exceed the previous peak set in the third quarter of 1997.
		The implied figure for second-quarter profits is $882.6 billion, which would represent an increase of 12.4 percent from a year ago and 8 percent from the first quarter, according to Joe Carson, Director of Global Economic Research at Alliance Capital Management.
		As a share of GDP, corporate profits rose to an estimated 8.2 percent in the second quarter from a low of 6.8 percent in the third quarter of 2001.
	quote.bloomberg.com /apps/news?pid=10000039&refer=columnist_baum&sid=aq1UCQsjw_gE (890 words)

	NCPA - Daily Policy Digest - Why Profits are Trending Down
		Whereas gross profits have fallen by about a third since the 1960s, after-tax profits have only fallen by about a quarter.
		Indeed, to the extent that companies have been able to offset some of the decline in gross profits by using the law to reduce their taxes, it has moderated the decline in after-tax profits.
		At the end of the day, after-tax profits are what matter, because that is what is left over to finance investment and pay the dividends upon which stock prices are based.
	www.ncpa.org /iss/eco/2002/pd102102a.html (358 words)

	[No title] (Site not responding. Last check: 2007-11-07)
		At the profit maximizing level of output for a local glass manufacturer, total revenues equal $5,000 and total economic costs equal $6,000.
		The firms accounting profits could be greater than or less than zero.
		Since economic profits equal negative $1,000 and since accounting costs do not include opportunity costs, whether accounting profits are greater than or less than zero depends on the magnitude of the opportunity costs.
	www.indiana.edu /~econjw/fall04-s201/top7.htm (407 words)

	[No title]
		Positive economic profit = The firm is earning more than the opportunity cost of the owner's inputs.
		Zero economic profit = The firm is earning exactly the opportunity cost of the owner's inputs.
		Negative economic profit = The firm is earning less than the opportunity cost of the owner's inputs.
	lamar.colostate.edu /~alex/ec102/lectures/s102lec9.htm (663 words)

	ITworld.com - Economic value added: A better measure of finances?
		At any rate, the class would typically start with the professor striding slowly to the front of the room and announcing that "accounting profits are not economic profits." He would peer over his spectacles to see if any wide-eyed freshman had even a glimmer of the profundity of this statement, then he would sigh.
		According to economic theory, capital eventually moves to the investment opportunities with the best returns because investors want to maximize their profits.
		An economic profit means that a business generates returns similar to an investment in the stock market.
	www.itworld.com /Man/2818/CWSTO53001 (1078 words)

	Bank Director Magazine - Low Margins and High Profits: An Economic Conundrum
		The result of the Federal Reserve policies was a successful economic recovery after a short and shallow recession.
		Yet 94% of banks are profitable and first quarter 2005 earnings were at a record level of over $34 billion.
		This result is really a tribute to how far bank boards and senior executives have come in their ability to manage their operations in difficult times.
	www.bankdirector.com /issues/articles.pl?article_id=11701 (568 words)

	Economic Profits
		The previous exercise was based on the assumption of fixed costs of $100 and variable costs that relate to the workers’ wages ($20/worker).
		accounting profits, which is the difference between a firm’s revenue and its explicit costs, and
		economic profits, which calculates profits while including opportunity cost as a cost of doing business.
	www.clt.astate.edu /marburger/new_page_113.htm (251 words)

	ProdCost
		At the university he attended, he spent $2,000 on books, $1,000 on cough medicine, and earned $12,000 as an economics instructor.
		the profits reported by accountants on a firm's annual financial statement.
		In the first year, his accounting profits are $70,000.
	www.csupomona.edu /~jlmartinez9/SampleTest8.htm (714 words)

	[No title]
		Accounting profits are typically: A) greater than economic profits because the former do not take explicit costs into account.
		If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were: A) $100,000 and its economic profits were zero.
		C) $100,000 and its economic profits were $100,000.
	www.tc.cc.tx.us /~srivas/91011.doc (1288 words)

	Boyes/Melvin Economics: Fundamental Questions
		Let's think about Joe's economic profits, competition, and entry into the market.
		Gourmet hamburgers turned out to be very popular, and Joe could charge a high price for them and make a very nice economic profit (for Joe).
		If new competitors opened restaurants to compete with Joe, his economic profits would eventually disappear.
	college.hmco.com /economics/boyes_melvin/fund/student/fq06.html (303 words)

	OBC warns of fall in profits- The Economic Times (Site not responding. Last check: 2007-11-07)
		NEW DELHI: Oriental Bank of Commerce on Friday said its profit will dip this fiscal due to acquisition of the ailing Global Trust Bank and hinted at another round of VRS to cut its excess flab.
		However, lower profit is a temporary phenomenon and GTB will contribute more than Rs 150 crore to OBC from 2006 onwards, OBC CMD BD Narang told reporters after addressing an Assocham-orgnanised seminar in New Delhi.
		Narang refused to specify the amount of dip in profits, expected to be suffered by OBC.
	economictimes.indiatimes.com /articleshow/954491.cms (214 words)

	Accounting and Economic Profits (Site not responding. Last check: 2007-11-07)
		If firms are earning economic profits, new firms will be attracted to the industry.
		If firms are earning economic losses, some firms will leave to go to a more profitable industry.
		If firms are earning zero economic profits (normal profits), there is no incentive for new firms to come nor is there a reason for firms to leave.
	www.faytech.cc.nc.us /~burnsc/eco251/profits.htm (131 words)

	NCPA - Economic Issues - Profits, Not Inflation, Lifting Wages (Site not responding. Last check: 2007-11-07)
		In some sectors of the economy, productivity and profit increases -- rather than tight labor markets and inflation -- are pushing up wages, according to economist James Glassman of Chase Securities Inc.
		Private sector compensation growth -- which measures changes in both wages and benefits -- accelerated to 3.4 percent at the end of 1997 from 3.1 percent the year before.
		Pretax profits margins of financial corporations surged to 20 percent late last year -- from 15.3 at the end of 1996 -- despite more generous payouts to employees.
	www.ncpa.org /~ncpa/pd/economy/pdeco/mar98ff.html (178 words)

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