Entrepreneurship\Factor of production Flashcards
What are the factors of production and their reward?
Capital. Interest
Entrepreneurship Profit
Labour. Wages
Land. Rent
What does capital mean?
Any money or assets that the owner has put into the business.
What does owned capital mean?
The investment made by the owner in the business.
What does borrowed capital mean?
Capital that can be borrowed over a period of time.
What is fixed capital
Fixed capital is used to by fixed assets like land and buildings.
What is working capital?
Working capital is used to purchase stock and keep cash in the business to pay for everyday expenses.
What does Entrepreneurship mean?
Entrepreneurship is the process of starting and running your own business
What is Labour?
Labour includes all efforts to create goods and services that will be sold to people satisfy their needs.
What is an unskilled worker?
Someone who has no qualifications and has more likely not completed school.
What is a semi-skilled worker?
Someone who has completed some school that enables people to do tasks unskilled workers can’t do.
What is a skilled-worker?
Someone who has completed grade 12 and may have some qualifications or has been trained.
What is a professional?
Someone who has has the minimum of a formal tertiary qualifications such as degree
What is a remuneration?
Remuneration is the amount of money the people receives for the work that has been done.
what is a weekly remuneration called?
A weekly remuneration is called a wage.
What is a monthly remuneration called?
A salary
