Chapter 3: MGTA01 (Textbook Notes)

Factors of production

The basic elements necessary for creating a business and producing goods and services.

Natural Resources

Materials sourced from nature, essential for various business operations.

Labour

Individuals contributing their efforts to a business, crucial for its functioning.

Capital

Money, machinery, and technology vital for business operations and production.

Entrepreneurship

The willingness to take risks and initiative to create and manage a business venture.

Resource Intensive

Businesses heavily reliant on natural resources for their operations.

Labour Intensive

Businesses requiring a significant workforce for their operations.

Capital Intensive

Businesses heavily reliant on capital or advanced technology for production.

Enterprise

A project or endeavor demanding energy and effort, with uncertain outcomes.

Factor Substitution

Replacing one factor of production with another to enhance efficiency or reduce costs.

Industrial Revolution

Historical period marked by significant inventions transforming industries in the 18th and 19th centuries.

Factory System

Concentration of work in large buildings designed for production purposes.

Agricultural Revolution

Historical period marked by agricultural discoveries leading to societal changes.

Capitalists

Individuals who own capital used as a factor of production.

Information Revolution

Historical period characterized by advancements in computing and information technology, impacting businesses and society.

Fifth Factor of Production

The concept of information being considered a crucial factor for business success and societal impact.