ENTREPRENEURSHIP

Detailed explanation-1: -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. What is the economics of one unit? A calculation of the profit or loss for each unit of the sale made by a business.

Detailed explanation-2: -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-3: -Profit is an important incentive that leads entrepreneurs to accept the risks of business failure. Entrepreneurs are individuals what are willing to take risks in order to develop new products and start new businesses. They recognize opportunities, enjoy working for themselves, and accept challenges.

Detailed explanation-4: -The profit motive refers to the idea that businesses are motivated to earn profits. Profits are the excess of revenue over costs, and businesses aim to maximize profits by selling goods and services at prices that are higher than their costs of production.

Detailed explanation-5: -When someone experiences profit motive, they’re taking action to make money, and this can distribute wealth to others. For example, if a person starts a business because of the profit motive, the people they hire to work with them or their investors can experience an addition to their wealth as well.