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|
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