Factors Of Production And Stakeholders

Question 1

Inputs

Answer 1

Raw materials required to produce goods

Question 2

Outputs

Answer 2

Finished products made from inputs

Question 3

Examples of inputs

Answer 3

Raw materials
Labour
Money
Owners/directors

Question 4

Examples of outputs

Answer 4

Goods and services

Needs and wants of consumers

Question 5

Factors of production

Answer 5

Resources used by a business to provide goods and services

Question 6

What are the four factors of production

Answer 6

1 land and raw materials
2 labour workforce
3 capital machinery equipment and money
4 enterprise

Question 7

Land and raw materials

Answer 7

Businesses need land e.g. oil/gas/trees/plants
Raw materials help to manufacture goods
The world does not have an unlimited supply

Question 8

Labour – workforce

Answer 8

Every business needs workers
Sometimes it is easy to find workers – other times a job may require highly skilled staff
Scarcity

Question 9

Capital – machinery, equipment and money

Answer 9

Capital – money that is needed to start and maintain a business
A business will never have the amount of money it would like

Question 10

Enterprise

Answer 10

The ability to handle uncertainty and deal effectively with change
E.g. Simon Cowell Bill Gates

Question 11

Stakeholders

Answer 11

A person/party who has an interest in the success of the business