Chapter 10, Problem 18AA

To determine

To state: Motivation to start a business.

Answer to Problem 18AA

The strongest motivation for an entrepreneur’s efforts to start a business is the ability to take your own decisions.

Explanation of Solution

The strongest motivation for the entrepreneur’s efforts to start a business is being his own boss i.e. being able to take free decisions and be satisfied.

Since there is a lot of risk involved in business due to large investment, rewards are also higher. Business rewards the businessman with greater returns in comparison with the fixed paying jobs. In job, your earnings are fixed whereas in business they are flexible, it depends on the risk-taking attitude of the entrepreneur and the hard work one puts into the business.

Also, business allows the entrepreneur to expand their work scale thereby helping them to achieve more financial benefit.

Economics Concept Introduction

Introduction: Business is an association where goods and services are exchanged for one another or for money.