Factors Of Production Flashcards
What are the 4 factors of production
Capital, Entrepreneurship, Land and Labour
What does the acronym, CELL stand for?
The 4 factors of production.
Cell
Entrepreneurship
Land
Labour
What is capital?
The money or monetary value of assets for the business.
What is meant by the term “return on investment”?
This is the money that comes back form capital invested in the business
What are dividends?
The sum of money payed regularly by a company to its shareholders out of its profit.
What are the two major sources of capital?
Own capital and borrowed capital
What is the difference between own capital and borrowed capital?
Own capital is capital given to the business by its owners and is repaid through profits or dividends. borrowed capital is capital given to a business from financial institutions and is paid back with interest.
How many types of capital are there and what are they?
There are two and there is fixed capital and working capital.
What is fixed capital
This is capital used for assets that will be in the business for a long periods of time. Usually longe than a year
What is Working capital?
Capital used to pay for the expenses of the business on a regular basis.
To keep it operating.
What is an entrepreneur?
A person that invest time, skills, money and the other factors of production to create profit from it.
True or false
It is better for an entrepreneur not to have skills because they can run their business better.
False it is better for an entrepreneur to have skill because they can run their business better.
What is the purpose of an entrepreneurial business?
To satisfy the needs and wants for society by offering goods and services formally.
What is Land
This is the natural elements used in the goods and services that are payed for.
What will determine the value of a certain resource?
The value will be determined by its availability and abundance.
True or false
If a good has a High scarcity means the price of that good will be higher.
True
True or false
The higher the abundance of a good the lower the price of that good shall be.
True
What is land use?
The use of physical land spaces
What are labourers?
Individuals I society that work for businesses to keep them running.
What are labourers paid for their mental and physical contribution to the business?
A salary or a wage
What is the difference between a salary or a wage?
A salary is a fixed monthly payment to employees over.
A wage is an amount paid to an employee based on the work they have done(daily, weekly or monthly)
What are the classification levels of Labour?
Unskilled, semi skilled, skilled or professional.
What is need for a labourer to be classified as unskilled?
They do not need formal training or qualifications some sort of training may be required this training is not formal or qualified .
What is needed for a labourer to be considered semi-skilled
The labourer requires some form of qualification, basic literacy and numeracy skills.
What is needed for a labourer to be considered skilled
This form requires formal qualification or certification to have been completed and a formal training must have been completed.
What is needed for a labourer to be considered professional?
They must have a formal education, obtained through college or university, requires employee to have a good understanding of their chosen field. They must be able to adapt knowledge where it is needed.
