Business Revision Notes

Chapter 1

What is the cause of the economic problem?

Unlimited wants + limited resources = Scarcity of Factors of Production

There are 4 Factors of Production:

·         Land: Natural resources such as oil, gas, metals, fields and forests. Anything that nature has to provide.

·         Labour: The efforts of peole needed to make products.

·         Capital: Finance, machinery and equipment

·         Enterprise: Risk taking ability of brining factors of production to produce a good or a service.

What are the main objectives in a business?

·         To make profit.

·         To increase added value.

·         To expand.

·         To survive.

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