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Factor Of Production Essay

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Economic resources are the inputs used in producing goods or providing services. Economic resources can be divided into human resources, such as labour, entrepreneurship and management, and nonhuman resources, such as land, capital goods, financial resources, and technology. The precise proportion of each input of production will vary from product to product and from service to service, and the goal is to make the most effective use of the resources that maximizes output at the minimum possible cost.
Labour is a classic factor of production, along with land and capital. Even in technologically advanced world nowadays, human labour is still needed to help process resources into products or to utilize resources to provide services. Different …show more content…

Land is all real estate and all natural resources on and in it, such as trees, minerals, elements, metals, gems, natural gas, thermal heat, oil, coal, water and crops.
Capital is the third classic factor of production and includes anything made by human beings that can be used in the production of goods or in providing services, such as machines, tools, buildings etc.
Financial management can be defined as: the management of the finances of a organisation (or business) in order to achieve financial objectives. Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to:
• Create wealth for the business
• Generate cash
• Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested.
There are three key elements of the financial management:
(1) Financial planning: management need to ensure that enough funding is available at the right time to meet the needs of the business.
(2) Financial control: financial control is a critically important activity to help the business ensure that the business is meeting its objectives.
(3) Financial decision-making: the key aspects of financial decision-making relate to investment, financing and

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