ZIMSEC O Level Commerce Notes: Factors of Production
- The four factors of production act as inputs during the production process.
- They are also generally known as resources.
| Factor | Description | Reward |
|---|---|---|
| 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. | Rent |
| 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. | Profit |
| 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 Commerce Notes page.
