Production

Question 1

Production

Answer 1

The process and methods of growing or changing raw materials, and making goods and services (outputs) that can be used or sold to satisfy the needs and wants of people and businesses

Question 2

The four factors of production

Answer 2

•land
•labour
•capital
•enterprise
The scarce or limited resources are collectively called the factors of production.

Question 3

Factors or production

Answer 3

Land received rent
Labour receives wages
Capital receives interest
Enterprise is rewarded with profit

Question 4

Land

Answer 4

This includes geographical surface area, rivers lakes and seas and minerals and chemical

Question 5

Labour

Answer 5

This is the physical and mental contribution to the creation of goods and services . The factor that converts resources into goods and services that people want. It is often divided into three broad categories including semi skilled and unskilled, skilled including plumbers, masons, and managerial and professional including business executives, teachers, doctors nurses etc

Question 6

Capital

Answer 6

This refers to the money that is invested in a business in order to acquire the assets which the business needs to produce or trade.

Question 7

Venture capital

Answer 7

Venture capital or start up capital is the money subscriber to finance new businesses and activities of an existing business that are considered to be of a risky rather and therefore not usually financed though traditional methods.

Question 8

Assets

Answer 8

These are possession of values that are employed in the process of production in the business sense

Question 9

Fixed capital

Answer 9

The items such as buildings machinery and other equipment with long life which are used over many time in the production of goods and services and the creation of further wealth

Question 10

Working capital

Answer 10

This refers to the short term assets of a firm that are turned over daily quickly in the course of business activity. They include cash, bank balances, stocks of raw materials work in progress, finished goods and other items required for the day to day operation of the business and which are continually being used up

Question 11

Enterprise

Answer 11

This is similar to labour but is a separate factor because it refers to the special skills (known as entrepreneurship) that some people have to organize their business. These people are a part of production by taking risks and making decisions which enables production to be carried out by anticipation of demand.

Question 12

In order to participate in entrepreneurship, the entrepreneur must be willing to:

Answer 12

Raise start up capital form savings or borrowing for the investment in their Business
Take carefully considered risks
Organize the various levels of labour required
Define and clarify business policy decisions so that all levels of personnel can understand what the firm is trying to achieve
Make any change necessary in the interest of growth and development of the business

Question 13

Bauxite

Answer 13

Jamaica and Guyana

Question 14

Clay

Answer 14

Throughout the Caribbean

Question 15

Diamonds, forestry and gold

Answer 15

Guyana

Question 16

Limestone

Answer 16

Barbados, Jamaica Trinidad and Tobago

Question 17

Manganese

Answer 17

Guyana metal and glass production

Question 18

Natural gas

Answer 18

Barbados Trinidad and Tobago

Question 19

Oil

Answer 19

Trinidad and Tobago

Question 20

Pitch

Answer 20

Trinidad and Tobago
Asphalt, shingles

Question 21

Sand and silica

Answer 21

Building materials, glass
Throughout the Caribbean

Question 22

Sun

Answer 22

Throughout Caribbean
Solar energy

Question 23

Inputs of a business

Answer 23

These are what a business puts into its production process. It applies to whatever factor of production the business is engaged in.

Question 24

Outcome of a business

Answer 24

This is the level of performance or achievement the business has gained as a result of its activities; the output achieved per unit or input.

Question 25

Production

Answer 25

The process of combining units of input (raw materials or man-made parts) and Human Resources (capital and labour) to create goods and services to satisfy human needs and wants.

Question 26

Productivity

Answer 26

This is a measure of the increase in output from each unit in the production process. There are several ways of achieving increased productivity e.g introducing new equipment or machinery or even training workers

Question 27

Why is productivity important?

Answer 27

This is due to the reason that it raises the level of output. Higher levels of productivity results in a lower cost per unit of output. This usually results in higher levels of profit for a business.

Question 28

Chain of production

Answer 28

This refers to the three categories that production is divided into. These include primary, secondary and tertiary production

Question 29

There are three levels of production

Answer 29

Subsistence, domestic and surplus

Question 30

Subsistence level

Answer 30

This level meets only the basic needs of the country which it takes place and is mainly reliant on agriculture. In other words sufficient recapture are produced only to enable the population to survive but not enough to improve the way of life. This way of living is however not as common as it was in the oastv

Question 31

Domestic level

Answer 31

At this level of production, everything is locally produced within the home country. They do not export or port goods. This level of production is beneficiary as it encourages a country to utilize all of its resources efficiently.

Question 32

Surplus level

Answer 32

This is a situation where a country is developed enough and are able to achieve a level of production which not only satisfies domestic consumption, but also provides a surplus that can be exported to item countries.

Question 33

Mergers

Answer 33

Sometimes known as an amalgamation is the voluntary combining of two or more businesses into one

Question 34

Takeovers and acquisitions

Answer 34

These are said to be more hostile that a merger because the act is not voluntary and often refers to the business strategy whereby the control of a business is taken over by another business by purchasing at least 51 per cent of its voting shares

Question 35

Horizontal integration

Answer 35

Occurred where a firm merges or takes over another firm at the same stage of production, for example making similar products or selling similar services eg a bakery in one town merging with one in another town.

Question 36

Vertical integration

Answer 36

This occurs when one firm merges with or takes over another one at a different stage of production. It can either be forward or backward.
Vertical forward takes place when a firm integrates with another business and that is at a later stage of production (that is, closer to the consumer)
Vertical backwards integration takes place when a company moves backwards down the chain of production that is closer to the raw materials supply like when a business acquires one of its suppliers. An eg is a retail chain acquiring ownership of a company that supplies all its fresh produce
A conglomerate merger or lateral merger is the integration or takeover of two or more companies engaged in unrelated businesses. They then become one corporate structure usually involving a parent company and possibly served subsidiaries. Often a conglomerate is a multi industry company and sometimes a multinational concern. This has the effect or spreading the risks of the business and also facilitates the sharing of ideas between them.