I often query friends, questions regarding their contribution to their employment in comparison to their gains after putting forward a scenario that pretty much sums up business as it is nowadays in a capitalist world.
Please bear in mind that I'm neither an accountant nor a tradesperson, the following are far simplified scenarios to just give some meat to the story.
Say an individual gets a US$1,000,000 loan to start a business selling sandwiches in 2010. The owner hires five people to work for him at their first store outlet at a shopping mall as salespersons, cook, accountant etc. Let's assume that business goes well and the company make 10% of net profit from total cost of US$50,000 a month (including loan payments), amounting to US$5000, up to US$60,000 a year.
In the next five years, profit increases by 5% per annum.
Total net profit is approximately US$348,113
-
Question 1: Can the owner claim to own the whole sum of US$348,113 ?
Question 2: If not, does that mean the employees are rightful owners to parts of the business too?
No comments:
Post a Comment