Question

From the four factors of production, which one is the engine behind

Answer 1

Answer:

Entrepreneur

Explanation:

Production is process of manufacturing goods using different components. It is the transportation of materials to finished goods.

The factors of productions include land, labour, capital and entrepreneur.

Land means all natural resources, which are free gifts of nature. Examples include: gold, iron, land tin, water, soil, forest, air, etc. The reward for land as a factor of production is RENT.

Labour means the human energy used in production. It involves all mental and physical effort of man used in the production process. It is divided into skilled and unskilled labour. Skilled labour means all mental effort put into production process while unskilled labour means all physical effort used in the production process. The reward for labour as a factor of production is WAGES.

Capital is the resources used to start a business. All money and resources used in the production process is refers to as capital. The reward for capital is INTEREST.

Entrepreneur is the KEY factor of production. He provides and control all other factors of production. He manages all other factors of production to achieve the organisational goal. He takes responsibility for the success or failure of the organisation. The reward for entrepreneur is PROFIT