{"id":495,"date":"2024-05-30T10:14:15","date_gmt":"2024-05-30T09:14:15","guid":{"rendered":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/?page_id=495"},"modified":"2024-05-30T10:22:47","modified_gmt":"2024-05-30T09:22:47","slug":"factors-of-production","status":"publish","type":"page","link":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/factors-of-production\/","title":{"rendered":"Factors of Production\u00a0"},"content":{"rendered":"<p>To produce goods and services businesses use\u00a0<strong>resources<\/strong> \u2013 also known as <strong>factors of<\/strong> <strong>production<\/strong>.\u00a0 The factors of production are\u00a0<strong>land<\/strong>,\u00a0<strong>labour<\/strong>,\u00a0<strong>capital<\/strong>\u00a0and\u00a0<strong>enterprise<\/strong>.<\/p>\n<ul>\n<li><span style=\"color: #ff0000\"><strong>Land<\/strong>\u00a0<\/span>\u2013\u00a0<strong>natural resources<\/strong>\u00a0\u2013\u00a0<strong>raw materials<\/strong> used in the production of goods.\u00a0 Examples include coal, oil, timber, metals, fish, water, crops, and livestock.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-46 aligncenter\" src=\"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160055\/Picture4.png\" alt=\"\" width=\"140\" height=\"143\" \/><\/p>\n<ul>\n<li><span style=\"color: #ff0000\"><strong>Labour<\/strong>\u00a0<\/span>\u2013\u00a0<strong>human resources<\/strong>\u00a0\u2013\u00a0<strong>workers<\/strong>\u00a0who produce goods eg factory workers, farmers. For services, labour will deliver the service eg electrician, hairdresser, shop worker.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-47 aligncenter\" src=\"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160116\/Picture5.png\" alt=\"\" width=\"114\" height=\"112\" \/><\/p>\n<ul>\n<li><span style=\"color: #ff0000\"><strong>Capital<\/strong>\u00a0<\/span>\u2013\u00a0<strong>man-made resources<\/strong>\u00a0\u2013\u00a0<strong>machinery or equipment<\/strong>\u00a0used to produce a good or deliver a service. This includes premises, factory equipment, vehicles, fixtures and fittings. These can be referred to the\u00a0<strong>assets<\/strong>\u00a0of a business.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-48 aligncenter\" src=\"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160140\/Picture6.png\" alt=\"\" width=\"137\" height=\"142\" \/><\/p>\n<ul>\n<li><span style=\"color: #ff0000\"><strong>Enterprise<\/strong>\u00a0<\/span>\u2013 a role of an entrepreneur is to\u00a0<strong>organise<\/strong>\u00a0the other factors of production so that goods and services are produced.<\/li>\n<\/ul>\n<h2><strong>How Businesses Satisfy Wants\u00a0<\/strong><\/h2>\n<p>Business organisations see the needs and wants that consumers have and produce goods and services to meet these needs and wants.<\/p>\n<p>Consumers buy the goods and services and their needs and wants are satisfied by consuming these products.<\/p>\n<p>The cycle is a continual process because consumer wants are unlimited.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-50 aligncenter\" src=\"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160517\/Picture7-300x284.png\" alt=\"\" width=\"342\" height=\"324\" srcset=\"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160517\/Picture7-300x284.png 300w, https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160517\/Picture7-768x728.png 768w, https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160517\/Picture7-624x592.png 624w, https:\/\/blogs.glowscotland.org.uk\/glowblogs\/public\/n5businessmanagement\/uploads\/sites\/10132\/2022\/06\/01160517\/Picture7.png 1023w\" sizes=\"auto, (max-width: 342px) 100vw, 342px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To produce goods and services businesses use\u00a0resources \u2013 also known as factors of production.\u00a0 The factors of production are\u00a0land,\u00a0labour,\u00a0capital\u00a0and\u00a0enterprise. Land\u00a0\u2013\u00a0natural resources\u00a0\u2013\u00a0raw materials used in the production of goods.\u00a0 Examples include coal, oil, timber, metals, fish, water, crops, and livestock. Labour\u00a0\u2013\u00a0human resources\u00a0\u2013\u00a0workers\u00a0who produce goods eg factory workers, farmers. For services, labour will deliver the service eg [&hellip;]<\/p>\n","protected":false},"author":79984,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-495","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/pages\/495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/users\/79984"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/comments?post=495"}],"version-history":[{"count":10,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/pages\/495\/revisions"}],"predecessor-version":[{"id":506,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/pages\/495\/revisions\/506"}],"wp:attachment":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/wp-json\/wp\/v2\/media?parent=495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}