Profit

Document description

Attention has recently been focused on attitudes approaching national hostility towards profit in this country. It is conceivable that profiteering, that is, making inordinate profits from the consumer, has become confused with profiting. This poses the basic question - when do profits become inordinate?. A standard is required on which to base judgements on excessive profits. One line of argument starts from consideration of the return on the venture capital put up by shareholders. This should be at a premium over the return on that capital if put in a risk-free investment.