Non- Profit Finance
The idea of finance for a long time has always been to make a lot of money.
However, in fact, non-profit finance is a pretty big thing in the United States – it is around 4% of their gross domestic product (GDP).
Many people such as Professor Dean Karlan started a non-profit company for noble causes – specifically, Prof Dean started a foundation called Innovations For Poverty in 2002 and by 2010 it has over 500 staffs and income of $25 million – the aim is to fight poverty.
Corporate Income Tax
Technically corporate income tax serves as a partial nationalization of all private company in the country because the tax laws imposed on companies entitles the government to a certain portion of their incomes. It varies from country to country:
- United States: 35 % Federal tax and up to an additional 12% state and local tax to a total of 47%
- Canada: 26.5%
- Japan: 32.11%
- Singapore: 17%
- Indonesia: 25%
- Asia average corporate tax rate: 22.59 %
- Global average corporate tax rate: 23.87%
Did you know that in the United States there are many different types of Bankruptcy procedures that an entity can go through and it is differentiated by “chapters”:
- Chapter 7: for a company to liquidate all of its assets – sell it off to pay off creditors and shut down the business
- Chapter 9: for a city or government to declare bankruptcy
- Chapter 11: for a company who wants to file for bankruptcy because they are in financial trouble but the business can be salvaged – so they will not shut down the business – instead looking for governments to bail them out
There is still a lot of inequality in this world and it is mainly because of people’s failure to manage risks.
For example during the financial crisis where the prices of many houses went down, people who bought the house during the peak, will have a value of their mortgages more than the value of their home – meaning they would have a negative net worth – as how much they owe the bank is more than the value of their assets if liquidated now.
Many people tend to associate finance with people who are selfish and greedy, with their main concern being to make as much money as they could.
I do not believe that is true – even if it is – it is the problem with the people and not finance. I love finance mainly because it solves a lot of the problems we have in this world – for example, insurance is an invention of finance that solves the issue of big expenses during rare situations and we solve this via risk- polling.
Overall, this 8 weeks financial market course has been an eye-opener for me on top of the investing courses I took with Mary Buffett and Cayden – and all the finance modules I took during my Singapore Polytechnic days – when I majored in finance for my Diploma in Business.
I am very excited to learn more and apply more things in relations to finance as I grow in life – I hereby invite you to follow me on my journey by subscribing to my website for free and receive updates of new and exclusive content every now and then!
Thank you for reading!
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