What is profit motive quizlet?

What is profit motive quizlet?

What is profit motive quizlet? Profit Motive. the force that encourages people and organizations to improve their material well-being. Open Oppurtunity. the concept that everyone can compete in the marketplace.

What is a profit motive example? Examples include air pollution from cars, noise from factories and litter. So, although the profit motive is supposed to maximise overall social wellbeing, it doesn’t necessarily work that way in reality.

What is the purpose of the profit motive quizlet? The profit motive is an economic concept which posits that the ultimate goal of a business is to make money. the exclusive possession or control of the supply or trade in a commodity or service. an economic system in which private business operates in competition and largely free of state control.

What is the definition of profit quizlet? Profit is defined as – The financial benefit that is realised when the amount of revenue gained from a business activity exceeds the expenses.

What is profit motive quizlet? – Related Questions

Which best explains the profit motive?

The correct answer would be, The desire to make money through goods and services. Explanation: Profit motive is the motivation to earn profit. In economics, the core motivation of an organization is to earn money.

Is profit motive good or bad?

So, yes having a profit motive is good in business. However, if the profit motive is the only motive of the business in all likelihood it will also eventually fail – it will generally just take longer to happen. So a profit motive is just one motive that a business must have.

What do you mean by profit motive?

The profit motive is the intent to achieve a monetary gain in a project, transaction, or material endeavor. Simply put, the profit motive suggests that people tend to take actions that will result in them making money (profiting).

What are factor payments quizlet?

Factor payments. The income people receive for supplying factors of production, such as land, labor, or capital. Patriotism. The love of one’s country; the passion that inspires a person to serve his or her country. Safety net.

Why does every decision involve trade offs?

Every decision involves trade-offs because every choice you want results in picking it over something else. You can’t always get what you want, like having two things. Opportunity cost means choosing the better one of two ideas. There will always be an alternative; what could have happened instead.

What is eminent domain quizlet?

Eminent Domain. -The right of the government to acquire private property, without the owner’s consent, for public use in exchange for just compensation.

What is the best definition of profit quizlet?

Profit is the total amount producers earn after subtracting the production costs. Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.

Which of the following is the best definition of profit?

Profit describes the financial benefit realized when revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

What is the difference between profit and revenue quizlet?

What is the difference between profit and revenue

Is profit a good motivation for business?

Profit is the basic motivation for any business, but it has to be tempered with humanity, respect and ethics. There’s a real danger for allowing businesses to run purely based on the idea that more is better.

Is there a profit motive in a mixed economy?

In mixed economy system, there are both profit motive like capitalism and social welfare as in socialist economy. In this system, government takes several measures to reduce the gap between rich and poor through progressive taxation on income and wealth.

What is your concept of reasonable profit?

Standards of reasonable profits are determined when a firm chooses to make only reasonable profits rather than to maximize its profit.

Is profit motive good for society?

Competition is the key tool by which markets overcome the individual firm’s profit maximization incentive. The profit motive is a good of value to the economy. It is needed to provide incentive to generate efficiency and innovation. However, over-remuneration of the profit motive creates profit inefficiency.

Why is profit bad?

Profit is Bad:

Is profit motive moral or immoral?

The profit motive is typically the object of ambivalent moral attitudes in present‐day society: on the one hand, the plethora of commodities and services made possible by the modern market economy, fuelled to a large extent by the profit motive, are easily recognizable.

What is profit and example?

Profit is a benefit or gain, usually monetary. An example of profit is the money a business has left after paying their expenses. The sum remaining after all costs, direct and indirect, are deducted from the income of a business, the selling price, etc.

Is profit maximization is the main motivation to entrepreneurial behavior?

Profit maximization does not adequately explain mastery as a motive for entrepreneurs or business leaders. Profit is an extrinsic goal, while mastery is an intrinsic desire. In business, the choices of sovereign consumers in the market validate performance.

Frank Slide - Outdoor Blog
Logo
Enable registration in settings - general