4.1 Nature of operations Flashcards
1
Q
Capital
A
Wealth in the form of money or assets, taken as a sign of the financial strength of an organization, and assumed to be available for development or investment.
2
Q
Production
A
Converting inputs to outputs.
3
Q
Level of production
A
The number of units produced during a time period.
4
Q
Productivity
A
The ratio of outputs to inputs during production. Concerned with how efficiently inputs are converted into outputs.
5
Q
Effectiveness
A
Meeting the objectives of the enterprise by using inputs productively to meet customers’ needs.
6
Q
Labour intensive
A
Involving a high level of labor input compared with capital equipment.
