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FACTORS OF PRODUCTIONS

An economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit. The factors of production includeland, labor and capital. The factors of production describe the function that each resource performs in the business environment. In essence, land, labor, capital encompass all of the inputs needed toproduce a good or service.












Land

Land is the economic resource encompassing natural resources found within a nation, such as timber, land, fisheries, farms, gold and othersimilar natural resources, used in the production of a good. Land is usually a limited resource for many economies.











Labor

Labor is all of the work that laborers and workersperform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it by combining all otherfactors of production. The entrepreneur also takes on all of the risks and rewards of the business.












The capital

The capital is all of the tools and machinery used to produce agood or service.

Capital can represent the monetary resources companies use to purchase natural resources, land and other capital goods. It also represents the major physical assets individualsand companies use when producing goods or services. These assets include buildings, production facilities, equipment, vehicles and other similar items.










Un término económico paradescribir los insumos que se utilizan en la producción de bienes o servicios en el intento de obtener un beneficio económico. Los factores de producción son tierra, trabajo, capital y capacidadempresarial. Los factores de producción describe la función que realiza cada uno de los recursos en el entorno empresarial. En esencia, la tierra, el trabajo, el capital y la iniciativa empresarial abarcan...