Question

in capitalism, most businesses have a profit motive. describe at least one reason that businesses with a profit motive may be helpful for society and at least one reason that they may be harmful for society. then explain whether you think profit motive is a good thing or a bad thing for society ?

Answer 1

i need helpp

Answer 2

profit motive drives the firms to align their offering in line with the customer requirements and provide quality product/service...


on the other hand profit motive might drive the firms to behave in a product centric behavior which might leave the customer with no option but to pay higher price for what he requires..


According to me all business definitely have a profit motive excepting ngos.....in that case there should be a cap on profit margins in the best interests of the customers so that both firm and the customer benefit in a long run...

Answer 3

Good because : most businesses would stop to exist if Profit was not their motive. Profit gives them the desire to excel and do better than what people already had or better than the customers. ANd that's why we always have an option of buying a ''better'' product in every item.
Bad because: We never know if we are paying the fair price or are we ignorant of how our natural resources are exploited. Or may be the companies are using harsh methods to have more productivity hiding the fact that we could use more natural or cheaper products.
A rough overall view can be gained from this small article ..read this http://financialdoodle.wordpress.com/2012/06/23/goal-dilemma-social-service-or-profit-maximization-2/

Answer 4

its good because profit motive act as an incentive for firms to innovate both in terms of products and production process which is beneficial for the society.
its bad because this motive leads them to take decision that harms the society for e.g. over exploitation of country's natural resources in pursuit of fulfilling high demand or increase of stress among workforce because of overload of work.
HOPE IT HELPS :)

Answer 5

in my earlier reply.. what i meant was ...*better than the competitors* n not customer