7115 · 4.1
Production of goods and services
**Production of goods and services** (4.1) opens the operations section. Draw the **input → process → output** chain and name the production method the case firm uses.
Need to know
What you need to know
- Inputs are the resources used in the production process.
- The four main categories are Land, Labour, Capital, and Enterprise.
- Land refers to natural resources and physical space.
- Labour is the human effort involved in production.
- Capital includes machinery, equipment, and finance.
- Enterprise is the skill of organising resources and taking risks.
Explanation
Production of goods and services
- Inputs are the resources used in the production process.
- The four main categories are Land, Labour, Capital, and Enterprise.
- Land refers to natural resources and physical space.
- Labour is the human effort involved in production.