In the modern democratic capitalist society, money is probably the most unifying factor. It is the commonest mode of payment in the procurement of services and goods in such societies (Harris, 2008). Money is the motivation behind people’s engagement in businesses in the modern democratic-capitalist society.
Labor cost is usually measured in terms of money. Labor is a cardinal input or factor of production in business and it is quantified in terms of money. According to Harris (2008) the quantification of labor in terms of monetary costs makes it competitive, valuable and relevant to businesses.
Profitability is the quality of a product (good or service) to afford benefit or gain. It is achieved when higher sales revenue than the cost revenue is attained. In the modern capitalist society profitability is usually quantified in terms of money (Harris, 2008). Profits are the difference between the labor inputs, costs of production among other expenditures and the sales proceeds.
Knowledge is a human resource that should be inherent in labor in order to guarantee profitability (Harris, 2008). The more knowledgeable a labor force is, the more the costs of acquiring its service or involvement in a business. However, the high costs of a highly knowledgeable labor are justified by the increased opportunities for profitability.
The modern capitalistic society values a knowledgeable labor force and a lot of emphasis has been placed on education which is the surest way to obtain knowledge required in modern businesses. Whether a business recruits experienced and highly knowledgeable labor force some form of monetary investment has to be weighed against labor requirements (Harris, 2008). As such, money is the quantification factor in businesses, labor is a mandatory requirement and knowledge is what makes labor relevant and a driving factor towards profitability.
References
Harris, M. (2008). Profitability and systematic trading. Hoboken, N.J: John Wiley.
