In this case we also speak of normal profit.
To calculate the amount of work you have to calculate the average salary for the position that deals in the company for example if I'm worker will have an average salary of € 1,300 then € 15 000 per year, if I am the manager will have a monthly salary equal € 10,000 per month and one year of 120,000 €. If I'm one of those executives who are seen only once a month will perceive no salary.
To this will be added to the average bank interest. For convenience we will consider 10%, in these cases we will have interests amounted to € 1,300 and € 12,000.
Also, go in all the compensation for the risk that is estimated to have for the creation of the company, usually the risk is estimated to be between 10% and 15% of equity or equity invested.
If the company has a profit for several years less than the sum of the three figurative costs mentioned above is better close it and work for third parties.
If the company achieves a profit higher than normal is said extra profit.
If the extra profit does not reach 20% of the normal profit the business owner can withdraw it or re-capitalize it, if it exceeds 20% the entrepreneur can reinvest the capital in search within the company.
Research is very important for companies, as it helps to keep equipment in optimal condition and search for new technologies that will make inroads into the market, leaving the business is more competitive than the other, if the employer decides not to use the profits excess research the company with time will not be more competitive and will lose customers switching to other until they fail.
This applies to all those companies that are not Ltd; the Ltd having actions have a different situation.
Whether the Ltd are listed or not, each share held is the share of participation and ownership in the company of each person.
In this case, if the company has a useful it will be divided among all the participants equity even if they possess a single action.
So the company's founder will have a job within the company and will be paid for that additional work will have the allocation of the year-end.
If Ltd will not have a profit at year-end, shareholders will not receive anything and could receive a letter to replenish losses depending on its stake.
It's possible that the administration decides to hold a share from 10 to 20 percent for research and divide the remaining useful in the various stakes.
Rashna