Most agribusinesses tend to be large corporations. Accounting profit - economic profit. It is a way to measure consumer response to changes in the price of products. It can help determine how much the firm can bid for the raw material it uses in production. It is used to calculate the price of rubber used in rubber bands which are extremely elastic.
Corporations are an artificial being with the legal rights, liabilities and duties of a person.
In a corporation, stockholders are liable for the organizations debts and liabilities. A corporation is perpetual, and not dependent upon a single person or group of people for its continuity. Ownership transfer is relatively easy in the corporation through the sale of stock. The Capper-Volstead Act protects farmers from antitrust legislation. Cooperatives are legally obligated to return any excess income after expenses to their member patrons.