MGTA01H3 Lecture 2: MGTA01-Chapter-2
14
MGTA01H3 Full Course Notes
Verified Note
14 documents
Document Summary
Chapter 2: building a business the factors of production. Factors of production: the basic building blocks that, in combination, are required to make a business, and produce things (i. e. natural resources, labour, capital, entrepreneurship) Resources that grow out of the earth or can be extracted from it. Resource intensive: an activity that is predominantly dependent on the production or use of natural resources (i. e. apple growing needs lands, water for irrigation) Labour: the people who contribute their efforts to a business. Labour intensive: a business or a process that requires a large amount of labour to produce its goods or services. Capital: money, or the machines and technologies that money can buy (i. e. could be saws, drills, trucks) Capital intensive: a business of a process that requires a large amount of money, machines or technology to produce its goods or services. Some businesses may use a more of one factors than the others in order to create products.
