Some companies like Newman’s Own say “100% of profits to charities”. Obviously, their employees still get paid, and the fact that new cookie brands come out means that some of the money is re-invested in the company. Presumably those two financial factors are not considered part of profits since they aren’t going to charity.
So at other companies, where do the profits go? If they aren’t going into either the company or any of its employees (including the CEO), where else could it go and still be considered profit?
In: Economics
Profits are after expenses (which include salaries and money spent on the company), they are revenues (total money made) minus expenses (total money spent).
For profit companies can use that money any way they want. they can give it to their board members, if its owned privately the owner can simply pocket it, they can put it in a bank and let it sit, they can use it to buy other companies, they can spend it on fancy bar stools for their break room.
Its just like you as a person, you make money and you pay your bills, what you do with the leftover money is really up to you.
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