Six Factors of
Production

Raw Material

Ingredients - Added to be combined into the product.
Supplies - Used to make the product
Any goods used in the manufacturing of any other goods.

Labour

Physical and mental work
Business now use automate and consolidate to save on labour cost.
Outsourcing is the hiring of another company to perform tasks for your company. Another way to save money.

Natural Resources

Agriculture
Fishing and trapping
Mining
Water
fuel and Energy
logging and forestry
Primary industry's that take something from the earth or sea. This is referred to as extractive industry's.

Management

Consists of people who run a business and control or direct the factors of production.
Allocates company resources and makes decisions that affects the operation of the business.

Information

Consumers
competition
Political conditions
Sources of supply
To produce goods and services in a
competitive global market.

Capital

Money invested into the business referred to as monetary capital. Can be transformed into items to run business such as a truck. This is called liquid.
Capital such as buildings or equipment are called non-liquid. Can not easily be transformed into ligiid capital. These are called capital goods.
Intellectual property the ideas or talents of a business workforce. A non-tangible form of capital.