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What is the fundamental characteristic that distinguishes business activity from other activities in society ?
- a)Emotional involvement
- b)Profit motive
- c)Social responsibility
- d)Personal satisfaction
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
What is the fundamental characteristic that distinguishes business act...
Profit motive
Business activity is fundamentally characterized by the profit motive, which distinguishes it from other activities in society. This profit motive is the driving force behind all business decisions and actions.
Key Points:
- Revenue Generation: The primary goal of businesses is to generate revenue and make a profit. This profit is essential for the sustainability and growth of the business.
- Resource Allocation: Businesses allocate resources in a way that maximizes profitability. This includes decisions related to production, marketing, and investment.
- Risk-taking: Businesses are willing to take risks in pursuit of higher profits. This risk-taking behavior sets them apart from non-profit organizations or government entities.
- Competition: The profit motive drives businesses to compete with one another to attract customers and increase market share. This competition fosters innovation and efficiency.
- Wealth Creation: Through the profit motive, businesses create wealth for their owners, employees, and other stakeholders. This wealth creation contributes to economic growth and development.
In contrast, activities such as volunteering, hobbies, or social services are not primarily driven by the profit motive. While they may have other goals such as personal satisfaction or social impact, the profit motive remains a unique characteristic of business activity.
Business activity is fundamentally characterized by the profit motive, which distinguishes it from other activities in society. This profit motive is the driving force behind all business decisions and actions.
Key Points:
- Revenue Generation: The primary goal of businesses is to generate revenue and make a profit. This profit is essential for the sustainability and growth of the business.
- Resource Allocation: Businesses allocate resources in a way that maximizes profitability. This includes decisions related to production, marketing, and investment.
- Risk-taking: Businesses are willing to take risks in pursuit of higher profits. This risk-taking behavior sets them apart from non-profit organizations or government entities.
- Competition: The profit motive drives businesses to compete with one another to attract customers and increase market share. This competition fosters innovation and efficiency.
- Wealth Creation: Through the profit motive, businesses create wealth for their owners, employees, and other stakeholders. This wealth creation contributes to economic growth and development.
In contrast, activities such as volunteering, hobbies, or social services are not primarily driven by the profit motive. While they may have other goals such as personal satisfaction or social impact, the profit motive remains a unique characteristic of business activity.
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Community Answer
What is the fundamental characteristic that distinguishes business act...
The fundamental characteristic that distinguishes business activity from other activities in society is the profit motive. Business activities are primarily undertaken with the objective of earning money or livelihood, rather than being driven by emotions, social responsibilities, or personal satisfaction. Profit motive serves as a key driver in the realm of business, guiding decisions and strategies for sustainable growth and success.
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What is the fundamental characteristic that distinguishes business activity from other activities in society ?a)Emotional involvementb)Profit motivec)Social responsibilityd)Personal satisfactionCorrect answer is option 'B'. Can you explain this answer?
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