ABSTRACT
A Business enterprise conducts activities which, its management hopes, will be profitable. Partly as the result of those activities and partly as the result of events beyond its control, the enterprise becomes better off (or sometimes worse off) over time. “Enterprise income” may be defined broadly as a measure of how much better off the enterprise has become in these ways over a given period. The enterprise may also become better off through receiving contributions of capital from its owners, or worse off through making distributions to them; but the effect of those transactions is excluded from the definition of enterprise income.
