Corporate costs
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Corporate costs
Corporations also have high cost. The cost includes salaries to the workers in the corporation, the cost of raw materials, fixed cost including the cost of having the facilities and building and the cost of the corporate management and administration.
There is also the cost of maintenance to keep the production facilities in good shape and in continuous production, the cost of upgrades that are needed to improve the corporation's product quality and the efficiency of the production processes and if the corporation has an outstanding debt, the cost of interest payments on this debt and repayment of expired loans.
Private and enterprise controlled public corporations have an additional cost factor, which is a contribution of part of their turnover to the country where they reside as compensation for the use of country resources and for occupying part of the country's economic capacity.
Corporations that are profitable, after paying all these costs, will probably pay taxes to the country where they reside and some dividends to the shareholders. These shareholders may be the country only, if the corporation is a state corporation, the enterprise only if the corporation is a private corporation or it may be a larger group of smaller shareholders, in case the corporation is a public corporation.
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