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Explain how the presence or absence of the profit motive affects an organization”s likelihood of achieving the purpose for which it was created, to the maximum extent possible with the resources at its disposal.
Ans- while with the presence of the profit motive,it is quite easy to understand why that is so optimal simply because the profits maximization entails increasin the revenues and decreasing the costs to the maximum possible extent, thus acheiving the purpose of making the most out of the given resources but we also need to understand how an absenc e of profit motive…

ould serve the purpose well.It does in cases where quantities being supplied matter more, for example in public goods like elementary education, where purpose is just to supply the maximum quantity of schools and not to make extra normal profits.

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