Enterprise And Entrepreneurship

Question 1

What are the four factors of production?

Answer 1

Land, Labour, Capital and Enterprise

Question 2

What is land in terms of factors of production?

Answer 2

All natural resources, such as land itself, but also natural resources such as plants, livestock, fish, oil, coal and gravel.

Question 3

What is labour in terms of factors of production?

Answer 3

The physical and mental effort expanded by people in the production of goods and provision of services.

Question 4

What is capital is terms of factors of production?

Answer 4

Wealth in the forms of assets. Goods that are made in order to produce other goods, such as machinery, factories and offices. Capital can also include the money used in the business.

Question 5

What is enterprise in terms of the factors of production?

Answer 5

The act of bringing together all the factors of production in order to create goods and services. This is carried out by the entrepreneurs whose reward is the profit made from these activities.

Question 6

What are the financial objectives to starting a business?

Answer 6

To make money.

To have a greater share of the rewards.

Question 7

What are the non financial objectives for starting a business?

Answer 7

To create their own job.
To take advantage of opportunities.
More control of working life.
Greater independence.
The need to escape.
To be your own boss.
To have personal satisfaction.

Question 8

What are the key characteristics of a successful entrepreneur?

Answer 8

To be determined.
Calculated risk taker.
Innovative.
Motivated.
Flexible.
Vision.
To be able to make decisions.
To have good business knowledge.