ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The price at which supply equals demand.
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A fee, similar to a tax, that importers must pay on the goods they import.
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Value of one currency unit in relation to another.
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An incentive that encourages entrepreneurs to take business risks in the hope of making a profit
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Detailed explanation-1: -The consumer is typically buying from the supplier rather than others. Why is profit motive important to entrepreneurs? It is important for entrepreneurs because it is an incentive that encourages entrepreneurs to take business risks in the hope of making a profit.
Detailed explanation-2: -Having a profit motive means that you intend to earn more in revenue from the activity than you incur in expenses. It doesn’t mean you’ll necessarily earn a profit. It just means that that’s your intent.
Detailed explanation-3: -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 pursue.
Detailed explanation-4: -The profit motive refers to what is generally taken to be the underlying motivation of business and commercial activity: to collect revenues in excess of costs or, more simply, to make money.
Detailed explanation-5: -The profit motive is a key tenet of rational choice theory, or the theory that economic agents tend to pursue what is in their own best interests. In accordance with this doctrine, businesses seek to benefit themselves and/or their shareholders by maximizing profits.