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profit is the primary motivating force for economic activity. do you agree? give any four reasons

Posted by Amrinder Waraich 5 years, 5 months ago

CBSE > Class 11 > Business Studies

1 answers

Gaurav Seth 5 years, 5 months ago

Profit is the primary motivating force for an economic activity, reasons for the same are:

1. It is essential for survival and growth of business.
2. It measures the efficiency and the progress of a business.
3.It measures the worth of an owner's investment.
4.It act as a means of self financing, it helps to attract capital from outside.
5. It increases credit worthiness of business.
6.It is the reward for taking risk, it motivates people to start or invest in a business.

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