Theoretical Basis of Distribution the Profit of an Enterprise
Keywords:
enterprise profit, profit distribution, gross revenue, elements of profit distribution, net profit, distributed profit, profit rationing.Abstract
Profit is an important lever that stimulates an enterprise to make various improvements, finance innovative developments, improve product quality, expand activities, and cooperate both at the global and domestic levels. Therefore, it is important to consider both the models of formation and distribution of enterprise profits. In this study, more attention will be paid to the distribution of the enterprise’s profit, since the volume of its formation in the next period depends on establishing the correct distribution of the enterprise’s profit.
Various models for the distribution of enterprise profits are recommended depending on the previous positive or negative result. Recommendations are presented for the use of profit distribution models for enterprises.
