ENTREPRENEURSHIP AND THE GLOBAL ECONOMY
GLOBALIZATION AND ENTREPRENEURSHIP
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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 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-2: -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-3: -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-4: -The following are illustrative examples of the profit motive. A cafe extends their hours and starts serving breakfast in order to increase sales. A company seeks to produce a higher quality solar panel than the competition in order to increase revenue.