Factors of Production
Factors of Production, also known as the 4 main types of input are land, labour, capital and enterprise. Factors of production/inputs are resources that that a business uses in the production process to create the final product. Land can represent all natural resources found on the planet that are available for production. E.g. live stock such as cow/pig. The input of land may be classified as renewable (meaning that it replenishes itself such as fish,water) or non-renewable(oil,minerals). Labour is all physical and mental effort of people used in the production and sale of a good. Labour can vary greatly depending on qualification and experience. Capital is all non-natural resources used in creation and production of products. A good example of this is investment or capital stock. Enterprise/entrepreneurship is the entrepreneur of the organization. He/she should be able to oversee the entire production process and drive the organization towards success.
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