Headline after headline say that companies “failed” and/or didn’t hit “targets”, but when you look at the numbers, the company made profits, sometimes in the millions to billions, it just wasn’t “enough”.
Is this greed? Why is it not good enough to make a profit?
In: Economics
A company isn’t judge by its own profit but the profit of other companies in similar businesses.
Year 2010
Company A made a million dollars
Company B made a million dollars
Year 2011
Company A made a million dollars
Company B made two million dollars.
The argument here that shareholders(investors in company) would make it’s that company A had a LOSS of a million dollars because company B managed to make a million where they somehow couldn’t.
In a private company this isn’t as big a deal as they don’t answer to shareholders, but they would still have to deal with the fact that they lost extra profit in some area.
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