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SALES MAXIMIZATION: The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales, rather than profit maximization. On a day-to-day basis, most real world firms probably do try to maximize sales rather than profit. For firms operating in relatively competitive markets, facing relative fixed prices, and relatively constant average cost, then increasing sales is bound to increase profits, too. Moreover, according to the notion of natural selection, even firms that seek to maximize sales, those that also maximize profit will remain in business.

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CORPORATE PROFITS DISTRIBUTION: Corporate profits are the excess revenue received by corporations over their accounting costs of production. Total corporate profits are distributed in three basic ways. One portion is used to pay corporate profits taxes. A second is undistributed corporate profits retained by corporations to finance capital investment. And a third is then paid out as dividends to shareholders, or corporate owners.

     See also | corporate profits | accounting cost | accounting profit | corporate profits tax | undistributed corporate profits | dividend | corporate stock |


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CORPORATE PROFITS DISTRIBUTION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 3, 2025].


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ACCOUNTING COST

An actual outlay or expenses incurred in the production of a good that shows up in a firm's accounting statements and records. Accounting cost is an explicit payment (that is, money changing hands) incurred by a firm. Accounting cost, while very important to accountants, company CEOs, shareholders, and the Internal Revenue Service, is only minimally important to economists. The reason is that economists are more interested in economic cost (also called opportunity cost), which is the value of foregone production.

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Today, you are likely to spend a great deal of time at a flea market hoping to buy either a coffee cup commemorating the 2000 Olympics or a birthday gift for your grandmother. Be on the lookout for crowded shopping malls.
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Rosemary, long associated with remembrance, was worn as wreaths by students in ancient Greece during exams.
"Far and away the best prize that life has to offer is the chance to work hard at work worth doing."

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