GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
What is the principle that producers are entitled to make more money from a business than they invest
|
|
profit motive
|
|
|
free enterprise
|
|
|
capital stock
|
|
|
risk and reward
|
Explanation:
Detailed explanation-1: -The main objective of every business is to earn profits. Assertion :Every business should try to maximise profit by all means. Reason: Primary objective of a business is to earn profits.
Detailed explanation-2: -Profit motive meaning portrays an entity’s intention to indulge in profit-making activities to achieve financial gain and profit. It interprets how an entity is prepared to take risks, innovate, coordinate and work hard that they won’t perform otherwise if there wasn’t a personal or economic gain.
Detailed explanation-3: -On the producer end, the profit motive works to allocate resources by encouraging producers to start new businesses.
There is 1 question to complete.