Business in a Contemporary Society Int 2

Wednesday, 15 November 2006

Factors of Production

Factors of Production

In order to produce goods and services, businesses need to use resources

  • LAND
  • LABOUR
  • CAPITAL
  • ENTERPRISE

Factors of Production

Land – natural resources extracted from Earth. Can be renewable or non-renewable

Labour – physical and mental effort of people in organisations

Capital – man-made resources, such as buildings, machines, tools

Enterprise – bringing together the other three factors of production

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