The Profit Motive

question 26

Multiple Choice

The profit motive

• A) is a fundamental feature of all societies.
• B) is no longer a key feature of capitalism.
• C) must be checked by competition if society is to benefit.
• D) is basically immoral.

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Definitions:

General Rules of Contract

Fundamental principles that govern the formation, interpretation, and enforcement of contractual agreements.

Capacity

The legal capability to understand the terms of a contract and to be held accountable for its obligations, or the maximum output or production ability of a facility.

Agency Relationship

A fiduciary relationship where one party (the agent) acts on behalf of another (the principal) in dealing with third parties.

Elect to Sue

The decision taken by an individual or entity to initiate legal proceedings against another party.