Intro to Business Chapter 1 Essay Q's

Chapter One – Assignment #1

Q: What are the factors of production (not what is in the book - remember?) Discuss how each are used in either your college or in the place where you work. Are the factors of production used in a family as well?

A: There are four factors of production; land, labor, capital, and entrepreneurship. They are each important factors and are all relevant for a business to be successful. In the company I work for “land” consists of the office building and maintenance shop that we conduct business in. Without this space our operations would not exist. Secondly, “labor” is a vital part to keeping the business going. If one of our employees are absent we are capable to fill in the gaps for a short period of time. However, any extended absence would put such a strain on the daily tasks that it would suffer. So, needless to say if you had no labor, then you would have no production and no business. Third, “capital” is so important. For example, without the tools in the maintenance shop we would be unable to fix the trucks that come into our shop. Lastly, “entrepreneurship” is the beginning key to the company. If the owner had not thought he could be successful in this area, the business would not have even started. The owner I work for is such an entrepreneur that he is always calling me into his office to brainstorm some great new idea or business to add on. Just this week we added a towing option on call with the state police. We had to add capital by purchasing a rollback, then we had to find labor to cover these wrecker calls, and we also had to create a secure lot (land) to put the impounded vehicles.

I totally see how these productions can be applied to a family. Land is where the family lives or their home. Labor, would be all those involved in keeping the home running smoothly including; Mom, Dad, and children. Capital, would be all the things we use around the house to complete our jobs. The vacuum, dishwasher, and...