Who isn't interested in profits? We're interested in profits...do you have any profits for us to be interested in?
You're the head salesperson for a company that makes koala-skin coats. The company, Dundee & Son Down Under Coats, is organized as a partnership. You are neither Dundee nor his son, but you are the best sales person they've ever had.
They want to keep you. To do so, they will give you something special for your years of service and the contribution you've made. They offer you a profits interest. It's a share of the company's profit, even though you never put in any capital. You don't become a partner in the business (Dundee says that's only for him and his son). But you will get a share of any profits the partnership generates.
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Finance: What is a profit center?2 Views
Finance a la shmoop what is a profit center? well here's a profit center and
here's a profit center yeah Google search is where Google makes like a [Google search of profits appear]
hundred forty-two percent of its profits so search for Google is its profit
center in fact if it weren't for its search engine well Google would actually
be losing money YouTube loses a billion dollars a year
depending on how you do the math Google Maps loses 100 million or so everything
else loses a few billion a year and search makes thirty billion dollars a
year annually yeah per year that's what it means
so more than makes up for everything else that's its profit Center and
without that profit center generating profits or cash to fund all these other [Man playing guitar with VR]
wacky ideas the driverless cars our favorite while Google would just be
searching for a way to make money but it doesn't it found it it's called search...
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A profit-sharing plan is when you share all your profits with Shmoop. No, really. Don't hit play. Just trust us and send us money.