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Which of the following reasons for starting a business is most closely associated with profit motive?

A contractor starts a new home building business with the expectation of making $500,000 in his first year of business.


A computer programmer hopes to design games that can benefit children with speech impediments.


A financial adviser opens a storefront designed to provide credit counseling for those needing help.


A baker re-opens the store her grandfather first opened. She is excited to carry on his legacy in the town.

User JsfQ
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Answer: A contractor starts a new home building business with the expectation of making $500,000 in his first year of business.

In case of the computer programmer, profit is not the main objective; helping children with speech impediments is. He might even sell the game for a lesser price than what he could sell it at in the market.

In the financial adviser’s case, the main objective of opening a store front is to provide credit counselling for those who need help. This doesn’t mean that the credit counsellor will provide free counselling to all his clients. It means that he will do so for a lesser fee as compared to market rates and to some clients he may even provide counselling for free. So, this business is not that closely associated with the profit motive.

Finally, the baker re-opens the bakery her grandfather opened to carry on his legacy. This means that she will carefully take all the steps necessary to ensure that the new bakery is as good and as popular as it was when her grandfather owned and ran it, even if it means that it will take a little longer for profits to come in.

Hence the contractor starting a new home business is most closely associated with profit motive.

User Arirawr
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