Profit motive

profit motive
desire to earn a favorable financial return on a business venture. Without a profit motive, tax losses from an activity may be considered a hobby loss, deductible only to the extent of income.
...

Nine-Step Profit Motive Test
Listed below are nine factors that the IRS looks at to decide whether an activity is run for profit (even if losses have resulted), or as a hobby.

The profit motive is singularly powerful in business. It drives strategies to increase revenues and seek out efficiencies--to stay vigilant to threats and opportunities that can either bring a business down, or launch it to even greater heights.

The absence of a profit motive and of an individual or group with a claim to the economic benefits from cost efficiencies weakens the DoD's incentive to minimize costs in the pursuit of given objectives.

Category 1 - First, deduct expenses that are allowable without regard to the taxpayer's profit motive from the gross income produced by the activity. For example, taxes, mortgage interest, casualty and theft losses, and contributions.

A command economy discourages individualistic profit motives and consumeristic needs. Under such a planned system, rewards, wages, and perks are disbursed based on the social value of the service performed.

If everybody acts from self-interest, spurred on by the PROFIT motive, then the economy will work more efficiently, and more productively, than it would do were economic activity directed instead by some sort of central planner.

An economic system based on a free market, open competition, profit motive and private ownership of the means of production. Capitalism encourages private investment and business, compared to a government-controlled economy.

As for the types of businesses eligible for SBA loans, the SBA imposes the following criteria: the business must be "for-profit" (all that means is that your business has a profit motive, not that it has actually generated a profit yet), ...

During the era of World War II, Britain's excess profits tax was revived, with tax rates increased to 100%. Critics contend that such levies discourage productive enterprise by eliminating the profit motive.

profit motive The primary objective for which firms strive to achieve. profit ratio The post-taxes net profit divided by total sales revenue, for a given 12-month period, expressed as a percentage.

See also: Expense, Business plan, Mergers, Franchise, Career