PROFIT AND LOSS

This is one of those simple subjects that in many ways is regarded as black and white or perhaps I ought to say black and red. But to make it easier let me put it this way, profit is good, loss is bad.

Everybody got that? Of course you do. Only if you do how come we don't all do our best to only worry about making huge profits and avoid any losses no matter how small?

The reason is easy enough to understand. It's call exceptions as in tax deductions. Well my interpretation that is.

You see making profit is suppose to be the goal of any organization devoted to the concept of existing to survive financially. Such as corporations. They are fiscal entities that have no lifeblood unless they make more money than they spend.

Individuals deal with that problem in different ways, such as using credit to subsidize when they no have enough money. But sooner or later if you can't borrow money on credit cards and don't have rich grandfather, you have to take a second job or end up bankrupt.

Corporations of course can't borrow money too, but I doubt they have any Uncle Joe to borrow from if things get tough. So that is why the profit deal is so important in that realm.

Am I boring anyone by saying things you already know? Perhaps. And why am I bothering. I guess because my real goal it so take issue with the whole idea that corporations actually exist just to make profit.

And in fact there are some organizations that function in the none profit status. Oh they get to accept donations instead of selling anything, but they don't get stuck paying taxes.

All of this makes the whole thing muddled from my point of view. Corporations live to make money unless they are owned by a bigger corporation who is just using them to loss money as a tax write off. So there you go, the whole thing boils down to a tax deduction!

See, I got around to that part eventually. Aren't you proud of me? I'm glad I did. And now that I did include that I can go on to comment how we all need to lighting up a bit on this concept of profit and loss.

Because to be honest a lot of it is window dressing. There are some non-profit organizations that collect huge sums of money. And governments don't even have to worry about making a profit either. Wish they did to some degree. Instead it is the territory of business when it is properly applied. Which is not that often in some cases.

But we do manage to go on despite that fact and somewhere along the way hopefully we don't always think profits is success and loss failure. That is a definition reserved for the domain of speculation in my opinion.