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Profit is the primary motivating force …

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Profit is the primary motivating force for economic activity. Do you agree?

Posted by Neelam Jha 5 years, 6 months ago

CBSE > Class 11 > Business Studies

1 answers

Meghna Thapar 5 years, 6 months ago

Profit is the basic motivation for any business, but it has to be tempered with humanity, respect and ethics. 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. The profit motive refers to an individual's drive to undertake activities that will yield net economic gain. Because of the profit motive, people are induced to invent, innovate, and take risks that they may not otherwise.

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