MGTA01H3 Lecture Notes - Lecture 2: Spinning Jenny, Stephen Hawking, Spinning Wheel
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MGTA01H3 Full Course Notes
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Document Summary
Businesses are made up of a small number of fundamental parts; every business uses some combination of these. Management theorists call the fundamental building blocks of a business the factors of production . Factors of production: the basic building blocks that, in combination, are required to make a business and produce things (goods and services) There are 4 factors of production: natural resources, labour, capital, entrepreneurship. Natural resources: things found in nature; resources that grow out of the earth or can be extracted from it: ex. Resource intensive: businesses whose activities are predominantly dependent on the production or use of natural resources: ex. Apple growing; farmer needs to acquire a great deal of land, may need to divert water for irrigation, and sells a product that is entirely natural. No business can exist without people; every business needs at least one person to organize and plan things. Labour: includes anybody and everybody who contributes their efforts to a business.
