Factors Of Production

Question 1

What are the 4 factors of production

Answer 1

Capital, Entrepreneurship, Land and Labour

Question 2

What does the acronym, CELL stand for?

Answer 2

The 4 factors of production.
Cell
Entrepreneurship
Land
Labour

Question 3

What is capital?

Answer 3

The money or monetary value of assets for the business.

Question 4

What is meant by the term “return on investment”?

Answer 4

This is the money that comes back form capital invested in the business

Question 5

What are dividends?

Answer 5

The sum of money payed regularly by a company to its shareholders out of its profit.

Question 6

What are the two major sources of capital?

Answer 6

Own capital and borrowed capital

Question 7

What is the difference between own capital and borrowed capital?

Answer 7

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.

Question 8

How many types of capital are there and what are they?

Answer 8

There are two and there is fixed capital and working capital.

Question 9

What is fixed capital

Answer 9

This is capital used for assets that will be in the business for a long periods of time. Usually longe than a year

Question 10

What is Working capital?

Answer 10

Capital used to pay for the expenses of the business on a regular basis.
To keep it operating.

Question 11

What is an entrepreneur?

Answer 11

A person that invest time, skills, money and the other factors of production to create profit from it.

Question 12

True or false
It is better for an entrepreneur not to have skills because they can run their business better.

Answer 12

False it is better for an entrepreneur to have skill because they can run their business better.

Question 13

What is the purpose of an entrepreneurial business?

Answer 13

To satisfy the needs and wants for society by offering goods and services formally.

Question 14

What is Land

Answer 14

This is the natural elements used in the goods and services that are payed for.

Question 15

What will determine the value of a certain resource?

Answer 15

The value will be determined by its availability and abundance.

Question 16

True or false
If a good has a High scarcity means the price of that good will be higher.

Answer 16

True

Question 17

True or false
The higher the abundance of a good the lower the price of that good shall be.

Answer 17

True

Question 18

What is land use?

Answer 18

The use of physical land spaces

Question 19

What are labourers?

Answer 19

Individuals I society that work for businesses to keep them running.

Question 20

What are labourers paid for their mental and physical contribution to the business?

Answer 20

A salary or a wage

Question 21

What is the difference between a salary or a wage?

Answer 21

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)

Question 22

What are the classification levels of Labour?

Answer 22

Unskilled, semi skilled, skilled or professional.

Question 23

What is need for a labourer to be classified as unskilled?

Answer 23

They do not need formal training or qualifications some sort of training may be required this training is not formal or qualified .

Question 24

What is needed for a labourer to be considered semi-skilled

Answer 24

The labourer requires some form of qualification, basic literacy and numeracy skills.

Question 25

What is needed for a labourer to be considered skilled

Answer 25

This form requires formal qualification or certification to have been completed and a formal training must have been completed.

Question 26

What is needed for a labourer to be considered professional?

Answer 26

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.