Question

Economists assume that the typical person who starts her own business does so with the intention of

Select one:

a.

maximizing profits.

b.

donating the profits from her business to charity.

c.

minimizing costs.

d.

capturing the highest number of sales in her industry.

Answer 1

Answer- a) maximizing profits

Explanation- In Economic, the main or primary motive or objective of the businessman or organization is to maximize its profits. A businessman always wants to earn a high amount of profit while maintaining all the other factors of business properly. High profit is the reward for bearing high risk in the business.

Donating the profits from her business to charity, minimizing costs, capturing the highest number of sales in her industry is the secondary motives or objectives of the businessman and organization.