They buy more of your service and they tell more of their friends, which leads to more profit.

The pie's getting bigger because these are real investments that are going to benefit my village.

And when people talk about earnings of a company, this is what they're talking about.

War does have its benefits...

With trade, there's mutual interdependency and mutual gain between parties.

Why make this thing?

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

But what do you do when the two come into conflict and you're forced to make a decision that either is in Britain's interest, or the interest of Britons, or citizens elsewhere in the world?

It affects your sales model. Are you going to hire direct sales? When do you hire them?

This is really important to pay attention to, because so many people say, oh, a company made this much.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

And I won't go into all of the details of an income statement, but any income statement you look at will have this operating profit line.

There is no profit in worrying.

He would do anything for gain.

They have to give permission to let the stock be borrowed, and they benefit, because they get some cut, hopefully, they get some cut of the rent, or the interest that I'm paying.

If you and I one sell individually what little we produce,

And then I'll do a more philosophical video on why these things even exist, and why they're useful, and why people may benefit or may not benefit from these things.

Just because I know that these guys like me.

No one wants it to go off.

We know how much it takes to build our product.

It would absolutely bring more harm than good.

And you'll hear these numbers, gross and operating profit and net profit and pretax profit, and it's very hard to understand that these are actually very, very different things, because they all have the word profit, and what does gross and operating and all that mean?

Just free.

Robert got a small proportion of the profit.

Like so many nickels and dimes.

And now we're ready to figure out how much money did the operations of this business make?

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

They have their place, but where do they go for those things we talked about earlier?

Why isn't it on every poster across the third world?

I'm not a charity commissioner.

So cash could be an asset.

And let's say, assume if I inherited this million dollars, I didn't finance it.

It's good for everybody.

Both of them are equilibriums because neither of the players can benefit from switching to the other strategy.

Minus 500,000.

Even parts of sentences could be protected and made restricted by copyright.

Our interests clash with theirs.

It became this economic sanctuary, where they could do penance for their profit making tendencies at five cents on the dollar.

But again, fun is not enough.

If they start to abuse their power, serving the interests of a selected few, instead of the common interest...

Go ahead, eat.

These are the only people who really have, arguably the sophistication and the time and the monetary incentive to really look and scrutinize what management is doing.

Kill the goose that lays the golden eggs.

There is no doubt about what they have done.