Commonplace Book Assignment Essay Example | Topics and Well Written Essays - 750 words

Commonplace Book Assignment - Essay Example They start businesses to get profits According to Baordman & Sandomir â€Å" profit motive is the universal irresistible force that theoretically not only drives the market but all of us ..† People choose industries where they can charge fees on their services and prices for their goods. To my surprise, no one got rich by working for someone else. These wealthy businesspersons constantly tell how they quit their jobs and established business that turned their fortunes. This means that the profit motive or the wealth maximization goal motivated them to go on their own and they have ripped the benefits of their efforts. They have chosen to spend their time and money in investing to get returns. The providers of capital to any company are called shareholders. For them to provide capital then they have to get returns for taking that risk. The management of these companies has to ensure that they generate profits to keep shareholders happy â€Å"thousands of executives and managers work for shareholders profits†¦Ã¢â‚¬  (Boardman & Sandormir). This profit-making motive ensures that the management has a sense of direction and focus on one goal instead of having a variety of goals. It imposes discipline on top management levels without this it would result in them awarding themselves lavish holidays and salary packages without regard for the investors. Personally, I have thought of the numerous businesses I would establish in a bid to get profits such include investing in the real estate business or a nightclub. Investing a large sum of money for anyone would require returns in future. This is the main motivation for businesses such as restaurants, retail stores, and insurance companies among others. If these organizations were not making profits then they could close down due to lack of funds. Profit motive means owning something for yourself since the income or the profit comes from the business units