Profit Motive

Profit Motive means that organizations must expect to receive something that is worth more than their investment before they are willing to invest. It refers to the economic statement that organizations need incentives to be persuaded to relinquish resources that are invested into operations. Profit Motive is a key tenet of rational choice theory, or the theory that economic agents tend to pursue what is in their own best interests. It also means that the organization expects to earn a profit on its investment. It ensures that resources are being allocated efficiently.