Cambridge AS A Level Business Studies/ ZIMSEC Advanced Level Business Studies/ Business Enterprise Skills Notes: Factors Of Production: Introduction
- As already mentioned several times, businesses are a result of entrepreneurs using resources to satisfy needs and wants
- Resources are also known as factors of production
- There are four factors of production namely:
|Land||Refers to the site on which production takes place including all the natural resources used in the production process.|
For example Freehold land, farming land, a dam/lake, forests, air and mineral ore deposits such as iron ore.
|Capital||These are all the manmade aids to production including wealth put aside for the production process e.g. money, property plant and equipment, tractors etc||Interest|
|Entrepreneurship/Enterprise/ Organisation||Is the ability, willingness to take risk and skill to run a business.|
It combines all the other three factors of production.
|Labour||Is the effort put in by people in the production of goods and services.|
It can be physical or mental effort.
|Wages and Salaries|
To access more topics go to the Advanced Level Business Studies page
To access more topics go to the ZIMSEC Business Enterprise and Skills page
To access more topics go to the Cambridge AS A Level Business Studies page