- 01 Jul 08, 02:31#52599
Geez, did you read my post? I just said that profit is what's left AFTER you paid for everything, that includes running the shop and R&D!
Le coeur a ses raisons que la raison ne connaît point. 
if the Ferrari road car profits fund the F1 team what funds the road car department?FIAT?
Profits are leftovers after deducting all the costs. So, if the Ferrari car dept. is profitable (after everything is paid for), the profit can then be used to develop the Ferrari F1 car. There is no need for the Ferrari car dept. to accumulate profits and put them in a bank account or pay them out to shareholders They can just as easily make the point that a continuous increase of the share price is enough 'repayment' to the shareholders and that re-investing the profits into the F1 team is the best way to ensure the stocks go up in value.
where does the money come from to run the car department if the profits from the car department go towards running the F1 team?
the design, R&D employees etc etc all dont work for free to create a range of road cars.......
surely you can see the equation here?
Geez, did you read my post? I just said that profit is what's left AFTER you paid for everything, that includes running the shop and R&D!


