When you buy a product from a large company/corporation where exactly does the money go?

Question

For example if I bought an iPhone from apple, where does that money go? Does apple have a huge bank account of all their money?

In: 1

Answer 1

Yes, Apple has an enormous bank account. Or, rather, they have dozens or hundreds of bank accounts all over the world. You can buy from Apple directly (it goes to their bank account), or you can buy an Apple product from some other store, in which case it goes to *that store’s bank account*. They bought the products from Apple earlier and that money went into Apple’s bank account.

Apple then uses the money to pay their employees, make new stuff, etc etc etc.