Define Profit Motive. Profit motive can also be construed as the underlying reason why a taxpayer or company participates in business activities of any kind. In a free market (where people voluntarily swap money, goods and services), the profit motive decides who gets what.
For example, an individual may choose to work overtime instead of taking time off because he or she is motivated. Mainstream microeconomic theory posits that the ultimate goal of a. The above list is not all inclusive in the determination of whether an activity is trade or business.
