Enterprise - Another term for a business

Entrepreneur - A risk taker who sets up a business

Factors of Production - The resources (inputs) that are used in the production of goods or services.

The four main ways they are categorised are:

• Land - This is the natural resources needed, does include physical land but is not limited to it
• Labour - This is all of the human resources available, which is split by the skills needed by the worker to produce the goods
• Capital - This refers to buildings, machinery and tools needed for production rather than its traditional meaning of money.
• Enterprise - This is the entrepreneur who organises the other three factors.

Example: Bakery

• Land - Flour, Eggs and other raw resources needed to bake
• Labour - Any baker that works at the business
• Capital - Building the bakery is located in as well as any ovens
• Enterprise - The owner of the bakery