University:
High School
Course:
High School Business
Academic year:

2023
Views:

34

Pages:

1
Author:

anon

IB Business and Management: Factors of Production Factors of production refers to the resources needed to make a product. There are four main factors of production: ● Land ● Labour ● Capital ● Enterprise Land All of the planet's natural resources are referred to here. Due to the urgent problem of global warming, businesses have an obligation called "Corporate social responsibility." Examples include: water, wood, fish, crude oil, minerals, metal ores, etc. This is a reference to the ethical standards that a business must follow when obtaining raw materials from a natural resource. Labour This refers to the workforce that businesses require during the product manufacturing process. Capital 1) Wealth in the form of money or assets. 2) Money invested in a business to generate income. 3) Factors of production that are used to create goods and services and which were manufactured artificially and which are not themselves being used up as materials in the manufacturing. Enterprise Enterprise is the factor of production responsible for the organization of other factors of production as well as being the factor of production willing to take risks.