Question

A person saves money to start a business in the future. Which motive best explains this behaviour?

Options

• Bequest motive

• Precautionary motive

• Enterprise motive (occupational motive)

• Liquidity preference

Answer 1

Enterprise motive (occupational motive)

Explanation:

The enterprise motive (also called the occupational motive) refers to saving done to start or expand a business or profession in the future. This reduces current consumption in favour of building capital for future enterprise.​