The operation of a business involves various factors of production, each playing a crucial role in its success. Management is responsible for directing and controlling these factors, making key decisions and allocating resources effectively.
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.
Information
Consumers
competition
Political conditions
Sources of supply
To produce goods and services in a
competitive global market.
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.
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.
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.
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.