Understand the nature of economic resources and that their finite supply creates the need for business organisations to make choices.

Four factors would include: land; labour; capital; enterprise. Land would include inputs into production provided by nature; labour would include all forms of physical and mental input into production; capital would include all inputs into production that have themselves been produced, for example, factories and machines; enterprise is responsible for organising all the other factors of production, introducing new techniques, taking risks and making profits.

 

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