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He believed that people cannot be trusted to act in their own best interest, and are better governed by a state that usurps the profit motive thought process from the people. He understood the evils of the profit motivator in business, and sought to artificially remove it from the equation. However, he too understood that it is natural to seek profit as the motivation for business, as he acknowledged that the government must actually take steps to cleanse business of the profit motive.
At first glance, the profit motive seems inseparable from business. However, examining Mill and especially Marx, we understand that it is indeed possible to antiseptically remove profit as a motivator and purpose of business, but the question remains, what to replace it with?
Communism was not the answer. It removed profit as a motive, but was not able to substitute any other purpose to business, so business in ex-Communist states such as the Soviet Union failed miserably.
China and North Korea find themselves making concession after concession to keep their socialist business leanings, but...
Profit here was definitely the motivation. Perhaps removing the profit motive from business may work in the short-term on a domestic level, but with our highly layered international economy, it is downright impossible to remove profit as a purpose altogether.
The trick, therefore, is to use profit and allow profit to motivate individuals and companies to perform, but put limits on it, via social nets and ethical limitations. Social nets involve welfare programs, and the recent Sarbanes-Oxley flurry shows that even in a capitalistic society, there is and must be room for ethics to invade, destroy the profit margin some, but increase economic growth in the short-term.
That, indeed, is the crux. In the long-term, capitalism will right itself and steady its own ship, as market forces will prevail. In the short-term, however, so many billions will suffer if capitalism is allowed to run rampant. That is why we allow profit as the purpose for business, but check it constantly.
Dell was setting a very rapid pace of new product introductions during the period analyzed by the author and afterwards as well. The focus on just the direct channel and thoughts of disintermediating the indirect channels through their highly successful direct build-to-order model blinded Dell from the much larger and more diverse profit pool all channels could provide. Ignoring these market dynamics and believing the direct model was by
profit loss statement Virtual Organizations: • Riordan • McBride • Kudler Describe important elements, noting means company. Profit and Loss Statement for McBride Plc. McBride Plc. has enjoyed a positive increase in its financial results, as it is best revealed throughout their most recent income statement. Starting at the end of the statement, where the costs are deduced from the incomes, it is revealed that the company has generated a net
Profit Sharing and Gain Sharing Many people tend to confuse gain sharing and profit sharing as they view them as one thing. This has led many firms to adopt the use of a profit sharing tool instead of a gain-sharing one. The purpose of this paper is to explain the differences between gain sharing and profit sharing based on various aspects in an organization. Profit sharing and gain sharing vary significantly.
New York: Prager Publishers. Marilyn E. Lashley, "Even in Public Television, Ownership Changes Matter," (Communication Research, 19:6 (December 1992), 770-86. Ledbetter, James. (1997). Made possible by. . .: the death of public broadcasting in the United States. London: Verso. Paletz, David L. (1998). The media in american politics: contents and consequences. New York: Longman. Public Broadcasting Service. (2010). "About pbs." Retrieved from Major Directives Behind any successful non-profit organization is a set of governance
Corporate Objective I do not think it is necessary to have a single-valued objective function. Maximizing firm value is not mutually exclusive to all other objectives, first. Second, that's like saying that human should only seek to maximize his or her net worth -- it's absurd. A corporation is an investment vehicle, yes, but that's not all it is. As for the idea that firm value maximization is the best objective
Financial Management of Not-For-Profit Organizations: Generally, financial management of not-for-profit organizations is similar to the process of financial management in the profit making sector in several aspects. Nonetheless, there are several major differences that contribute to a different focus of a not-for-profit financial manager. In the commercial sector, the for-profit enterprises mainly focus on capitalizing shareholder value and overall profitability. On the contrary, not-for-profit organizations have the basic aim of providing