The share of earnings that a business owner pays

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Jaelynn

Social Studies

5 February, 15:47

The share of earnings that a business owner pays

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Andy · Answer 1

The "Net Profit" is the earnings result from a business operation during a fiscal period (which is normally a year). this profit is divided proportionately among the shareholders of the company. A shareholder is an individual who was bought a certain number of shares, which are the right to ownership of a percentage of the company.

A business is its legal right to retain yearly earnings (the net profit) if that is the decision taken by the board or the owners. This is a common practice in order to reinvest the earned money in the business in order for it to grow.