Definition of Profit motive:
Profit motive is the intent to achieve monetary gain in a project, transaction, or material endeavor. Profit motive can also be construed as the underlying reason why a taxpayer or company participates in business activities of any kind.
In economic thought, Adam Smith identified the profit motive in his book, The Wealth of Nations, as the human propensity to truck, barter, and trade.
Chance of generating a surplus of revenue over all costs the reason most people start and stay in a business.
The desire for financial gain as an incentive in economic activity.
How to use Profit motive in a sentence?
- While starting a new business involves some risk for individuals, it is the profit motive that will push them into taking on the responsibility, time, and financial investment to seek their entrepreneur goals.
- The profit motive was intense by the business partner so we shared their enthusiasm for increasing our market share and profits.
- 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.
- Profit motive is also a technical term used by taxing authorities to establish a basis for levying taxes.
- When suppliers are not driven by the profit motive, they cease to be customer-oriented.
- I was interested in the profit motive of the company and what strategy they would use to ensure it was successful.
Meaning of Profit motive & Profit motive Definition