Profit before interest and tax and Public goods: Difference between pages

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(PBIT).  
''Economics''.


A measure of the operating profitability of a business, before taking account of the effects of either:
Examples of 'pure' public goods include flood control, street lighting, policing and national defence.


#The chosen capital structure; or
The definition of public goods includes non-rivalry and non-excludability.
#Taxation.




The purpose of the PBIT measure is to facilitate comparability of underlying businesses, cleaned of any distortions caused by different capital structures or different tax positions.
Non-rivalry means that when a public good is enjoyed, it doesn’t reduce the amount available for other people.
 
Non-excludability means that it is not possible both to provide such a good and prevent others enjoying it. For this reason, public goods are more likely to be efficiently provided by the public sector, rather than by the private sector.




== See also ==
== See also ==
* [[Interest cover]]
* [[Antitrust law]]
* [[Net operating profit after tax]]
* [[Cartel]]
* [[Operating profit]]
* [[Competition & Markets Authority]]
* [[Return on capital employed]]
* [[Economies of scale]]
* [[Monopolistic competition]]
* [[Monopoly]]
* [[Natural monopoly]]
* [[Oligopoly]]
* [[Perfect competition]]
* [[Private sector]]
* [[Public sector]]
* [[Regulation]]
* [[Trust]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]

Revision as of 00:55, 15 May 2020

Economics.

Examples of 'pure' public goods include flood control, street lighting, policing and national defence.

The definition of public goods includes non-rivalry and non-excludability.


Non-rivalry means that when a public good is enjoyed, it doesn’t reduce the amount available for other people.

Non-excludability means that it is not possible both to provide such a good and prevent others enjoying it. For this reason, public goods are more likely to be efficiently provided by the public sector, rather than by the private sector.


See also