Business Studies A Levels Unit 1 Chapter 1 Topic Factors of Production

ACTIVITY OF A BUSINESS

A business

·         Identifies needs of a consumer or other firms

·         Purchases resources or factors of production

·         And produces goods or services that satisfy these needs

·         With aim of making a profit

CONSUMER GOODS:      are the tangible goods sold to the general public

CONSUMER SERVICES: are the intangible products sold to the general public

FACTORS OF PRODUCTION OR RESOURCES

·         Land; in addition to land all renewable and non-renewable resources of nature

·         Labor; manual, skilled, highly skilled labor, permanent, temporary

·         Capital; finance and capital goods like machines, computers, offices, vehicles

·         Enterprise; risk taking individuals, decision makers, coordinators

CAPITAL GOODS: are the physical goods used by industry to aid the production of other goods and services