And that's what these brands did.

And that's my dad found that.

You'll get your cut.

He is alive to his own interests.

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.

Minus 500,000.

He is alive to his own interests.

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.

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

We shared the benefit together.

They allotted the profits fairly.

He claimed his share of the profits.

Lookin' out for number one.

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

I'll just abbreviate that as Nl.

Go ahead, eat.

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

We shared the profit among us all.

The loan bears an 8 interest.

He acted in his own interest.

I went shares with my cousin in the profits.

Our interests clash with theirs.

You send men to slaughter for your own gain.

Kill the goose that lays the golden eggs.

The taxes will be 153,000.

I'm not a charity commissioner.

A benefit to both our worlds.

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

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

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

He is acting on his own behalf.

He always puts himself first.

So that's a nice thing to keep in the back of your mind, this return on asset concept, and it's very closely tied to operating profits and the actual assets of a firm.

FDlC insured.

The rewards would be... enormous.

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

I made a good profit by selling my car.

Before Interest and Taxes.

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 350,000 of net income.

This was interest. This was non op income.

This guy makes what is this?

And then I was left with 1 million.

It's good for everybody.