Profit Motive Definition

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.

Profit motive definition. See also PROFIT SATISFICING THEORY. How is the profit motive supposed to work. In the free market economy the profit motive is the ultimate purpose of a commercial enterprise to earn a profit.

The profit motive drives businesses to come up with creative new products and services. They then sell them to the most people. In theory the profit motive distributes resources efficiently but in practice there are some problems.

Stated differently the reason for a businesss existence is to turn a profit. That is the driving force behind capitalism and the free market economy. The bank made pre-tax profits of 35 million.

The existence of a profit-seeking motive is a question of fact that is not necessarily determined by the persons professed intentions. Profit motive in British English. In accordance with this doctrine businesses seek to benefit themselves andor their shareholders by maximizing profits.

Profit motive definition the desire for profit that motivates one to engage in business ventures. You can improve your chances of profit by sensible planning. The profit motive is the will to make money.

In a free market where people voluntarily swap money goods and services the profit motive decides who gets what. Because of the profit motive people are induced to invent innovate and take risks. The desire to make a profit making decisions based on the profit motive.