Question

should there be a limit on how much profit a company or corporation can make? statements should be supported by relevant facts, evidence and or examples.

Answer 1

No; this should not be done.

Profit is the main objective of companies. This is the encouragement of doing business, making it more successful, searching for expansion, and working on research and development. If there is a limit on profit, those activities may be limited too or may be stopped. Rather, companies should be encouraged for earning more profits because it increases government income through tax collection. More profits means more production, which increases country’s GDP as well.

Example: Suppose a company was earning profits during the last three years as $45,000, $59,000, and $72,000; there is an increasing trend and it happens because of investing on research and development work by the company. This year, a profit-cap is imposed by the government that profit must not exceed $60,000; once the rule is implemented, the company breaks the research and development team since there is no requirement; actual it hurts customers, since they are unable to get improved products.