Factors of Production and Business Structures

Front

Definition of Land in Production

Back

All natural resources used to produce goods and services

Front

Definition of Labor in Production

Back

Any effort a person devotes to a task for which they are paid

Front

Examples of Physical Capital

Back

Tools, tractors, machinery, buildings, factories

Front

Definition of Human Capital

Back

Skills or knowledge gained by a worker through education and experience

Front

Examples of Human Capital

Back

College degrees, vocational training

Front

Role of Entrepreneurship

Back

Combines other factors of production to create goods and services

Front

Entrepreneurial Actions

Back

Take the initiative, innovate, act as risk bearers

Front

Advantages of Sole Proprietorship

Back

Easy to create, flexibility, few regulations, tax advantages

Front

Disadvantages of Sole Proprietorship

Back

Unlimited liability, limited financing, limited resources

Front

Disadvantages of Partnerships

Back

Unlimited liability, possible conflicts, shared profits