Profit is the reward for taking risks involved in investing money and time. It is the reward for innovation.
Adam Smith in his book “The Wealth of Nation” (1776) argued, “People do their best when they reap the rewards of hard work and intelligence and suffer the penalties for laziness”.
He favored the use of profits as a means of encouraging individual incentive and initiative.
There are three elements of business
Business reveals that it has several important elements, namely:
Recurring exchanges. Recurring sale constitute business. If goods is purchased or produced fro sale, it is a business activity.
• Creation of values or utility. Form place, time and ownership utilities.
• Satisfaction of wants. People have many physiological and mental needs.
• If you buy a flat for your own living is not a business activity.
Adam Smith in his book “The Wealth of Nation” (1776) argued, “People do their best when they reap the rewards of hard work and intelligence and suffer the penalties for laziness”.
He favored the use of profits as a means of encouraging individual incentive and initiative.
There are three elements of business
Business reveals that it has several important elements, namely:
Recurring exchanges. Recurring sale constitute business. If goods is purchased or produced fro sale, it is a business activity.
• Creation of values or utility. Form place, time and ownership utilities.
• Satisfaction of wants. People have many physiological and mental needs.
• If you buy a flat for your own living is not a business activity.
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