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.

People do not enslave people to be mean to them.

And that's my dad found that.

But here you see it means very, very different things.

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.

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.

So now look at the different lens.

So there is spill over there are benefits beyond the boundaries of these reserves that help people around them, while at the same time the reserve is protecting the entire habitat.

He acted in his own interest.

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

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

So you take the interest out.

Italians have to undertaking to undertake also at the suggestion of Europe, but basically for their own interests, for the interests of ourselves and of future generations of

He is acting on his own behalf.

I mean, these are state assets.

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

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.

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

Sloan began manufacturing targets on his own for profit years ago.

Also, in the interest of security and public safety...

I realized that for the greater good, I had to let him go.

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

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?

Kill the goose that lays the golden eggs.

Okay, this morning I'm speaking on the question of corruption.

I say 50 percent here it's more like 60, 60 percent of the cost of your laptop is sales, marketing, distribution and profit.

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

Half our profits go to build and staff basic health clinics in poor african communities.

One blueprint for trouble, making collapse likely, is where there is a conflict of interest between the short term interest of the decision making elites and the long term interest of the society as a whole, especially if the elites are able to insulate themselves from the consequences of their actions.

To go to war, to free people from an outside aggressor, is noble

What's in it for the institution?

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

So most cash flow statements, they'll start so I'm going to do a cash flow statement right over here

Now, there was a man who knew the benefits of a little liquid courage . beeping

MlT actually lived by its actions.

We know how much it takes to build our product.

This is a pretty profitable business, more profitable than most.

So these assets might be generating non operating income.

I need to make or what price I have to charge.

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

Could lead to better investment. Could lead to more productivity.

You can only sell luck in an unequal society because you offer a life changing reward. The monetary system is based on profit leading indirectly to corruption, any game can also be corrupted.

So, let's see, you have to do 1.85.

And you might wonder, where does that come from?