Fundamentals of Business

An Enterprise and its inputs (resources)

Consists of factors of production - inputs to production process. The availability of the various factors of production in a country has an important influence on investment and international trade. To succeed, an enterprise must achieve a healthy mix of the various factors of production.

2.2.1 Land

Primary input and factor-of-production which is not for consumption but without which no production is possible. Land in economics comprises all naturally occurring resources whose supply is inherently fixed (i.e., does not respond to changes in price), such as geographical locations (excluding infrastructural improvements and "natural capital", which can be changed by human actions, land can also refer to built environment, the man-made surroundings that provide the setting for human activity. Land as part of natural environment supports infrastructure that is vital for every single enterprise. The payment to land is rent.

2.2.2 Labour

In economics, labour is a measure of the work done by human beings. In order to function in a work environment and individual must possess: Competence a standardized requirement for an individual to properly perform a specific job. It encompasses a combination of knowledge, skills and behavior utilised to improve performance. A person possesses a competence as long as the skills, abilities, and knowledge that constitute that competence are a part of him, enabling the person to perform effective action within a certain workplace environment. Knowledge, skills and behaviour are dynamic; you can have knowledge, a skill, ability that is obsolete, if a job changes.

For example:

When 6000 employees lost their jobs when MG Rover went burst, there were many engineers whose experience, knowledge and skills became obsolete because they can't find something of similar nature to do, and to enter the labour market have to re-train and acquire new skills.

Knowledge

is defined (Oxford English Dictionary) variously as (I) facts, information, and skills acquired by a person through experience or education; the theoretical or practical understanding of a subject, (ii) what is known in a particular field or in total; facts and information or (iii) awareness or familiarity gained by experience of a fact or situation. Philosophical debates in general start with Plato's formulation of knowledge as "justified true belief". A skill is an ability, usually learned and acquired through training, to perform actions which achieve a desired outcome.

Human behavior

is the collection of behaviors exhibited by human beings and influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion and/or genetics.