Profit Motive and Its Impacts

This lesson, part of a series on entrepreneurial trends, focuses on the domestic impact of entrepreneurship. It covers how entrepreneurship drives economic growth, job creation, and social development within a country or community. The lesson also examines the profit motive, discussing both its negative impacts, such as exploitation and short-term focus, and its positive impacts, including innovation and job creation. Examples from various industries, like fast fashion and companies like Tesla and Amazon, illustrate these points.

What is the primary objective of the lesson on the domestic impact of entrepreneurship?

• To study historical business models

• To understand global market trends

• To evaluate the domestic impact of entrepreneurship on society

• To learn about international trade policies

How do small businesses primarily contribute to job creation?

• By outsourcing jobs overseas

• By fostering employment opportunities within the community

• By automating all processes

• By reducing workforce size

Which of the following is an example of social entrepreneurship?

• A tech startup focusing on AI

• A social initiative addressing local education issues

• A luxury brand launching a new product line

• A fast-food chain expanding globally

What is the primary goal of businesses driven by profit motive?

• To enhance employee satisfaction

• To reduce environmental impact

• To improve customer service

• To maximize profits

Which industry is often criticized for exploitative labor practices due to profit motive?

• Automotive

• Fast fashion

• Technology

• Pharmaceutical

What was a major issue in the Wells Fargo scandal related to profit motive?

• Creation of fake accounts to meet sales targets

• Development of new banking technologies

• Investment in renewable energy

• Expansion into new markets

How does profit motive drive innovation in companies?

• By focusing solely on cost-cutting

• By investing in research and development

• By limiting market competition

• By reducing research and development

Which company is known for its innovation in electric vehicle technology due to profit motive?

• Ford

• Tesla

• General Motors

• Toyota

How does Amazon's profitability contribute to economic growth?

• By limiting its product range

• By expanding globally and creating job opportunities

• By reducing its workforce

• By focusing on local markets only

What is a positive impact of profit motive on society?

• Economic growth and job creation

• Increased unemployment

• Reduced innovation

• Environmental degradation