Must state-owned corporations share their profits directly with the public? Of course not. Universities should be considered no differently, and there is nothing preventing them from owning a corporate asset. Anyone can bequeath an asset -- including a corporation -- to a university. WARF may not fit this description, but the situation is no always black and white. And as John Stirling above said, sometimes increasing IncomeSource2 can reduce the burden on IncomeSource1. If I, the taxpayer, am IncomeSource1, then I heartily welcome the exploitation of IncomeSource2!