profit (noun, prof-it, \ ˈprɑːfɪt \) motive (noun, mo-tive, \ ˈmoʊtɪv \)
Definition: is an individual’s or organization’s intent to attain monetary gain by performing transactions or other financial operations, and it is the reason why most individuals decide to open a company and participate in business activities. In some situations, a profit motive has to be established for some transactions to be deducted from a company’s expenses. By IRS standards, a profit motive is a concept that separates a business endeavor from a hobby, as the latter’s losses aren’t deductible since the individual in question had no intent on making profits from his or her operations.
In a Sentence:
- Even though opening a new business is a risky venture, the profit motive is enough for most people to make the leap and invest in their entrepreneur dreams.
- As Robert clearly has no interest in technology, it’s obvious that the only reason why he opened a new computer manufacturing firm is the profit motive.
- Since both Trevor and Linda shared a profit motive, they were both enthusiastic about entering a new market and increasing their income.
Synonyms and related words: motive, speculative motive, motive test, transactions motive, precautionary motive