IGCSE Business Studies revision notes for chapter 7

Revision notes for chapter 7. Like previous chapters, key terms are highlighted in yellow.

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  • Created on: 10-03-13 15:56
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Revision Notes for Chapter 7
Key terms
1. Capital intensive production ­ where production relies more on the use of
machineries and plants than human labours
2. Division of labour ­ specialization in tasks or skills by an individual
3. Entrepreneur ­ an individual who organizes other factors of production
4. Factors of production ­ the resources used to produce goods and services
5. Fixed capital ­ man-made resources, for example machineries and tools
6. Labour ­ the people used in production
7. Labour intensive production ­ where production relies more on the use of
human labours than machineries and plants
8. Production ­ the transformation of resources into goods and services
9. Specialization ­ the production of a limited range of goods
Factors of production:
Land: Businesses need a plot of land to locate its operations. This might
include factories, offices and car parks.
Capital: Capital refers to the artificial resources created in the business.
There are two types:
o Working capital ­ stocks of raw materials which will be used up during
production
o Fixed capital ­ man-made resources such as machineries and tools
Labour: This refers to the workforce in the economy, such as managers.
Enterprise: Entrepreneurs are business owners. They are responsible for
organizing other factors of production.

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