(A) Question: What is business?
Answer : A business is defined as an organisation or enterprising entity engaged in commercial, industrial, or professional activities.
Question: What does business do?
Answer: Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit."
(B) Question: Describe examples of each
of the four factors of production that exist for this business?
Answer: The four factors of production for business are land, labour, capital and entrepreneurship. The definition of it are given below:
Land
In its simplest form, land is the physical place where economic activity takes place. In our lemonade stand example, it could be the patch of lawn in front of your house. However, land also includes all the natural resources found on it. Land plays an important part in
production because land itself and the resources on it are usually limited. Political regulations prevent a person from just going and claiming something for themselves, or there may not be enough for everyone to have.
Labor
Labor represents all of the people that are available to transform resources into goods or services that can be purchased. This factor is somewhat flexible since different people
can be allocated to produce different things.
Nobody has to produce everything themselves. That would be impractical. It's also important that a labor force is well educated and well trained to ensure that they can produce goods at peak efficiency and quality.
Capital
capital can be the money that companies use to buy resources, as well as the physical assets companies use when producing goods or services, such as factories and machinery.
Entrepreneurship
A person who undertakes the risk of starting a new business venture is called an entrepreneur. An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which aggregates capital
and labor in order to produce goods or services for profit.
(C)Question: What are the three basic questions of economics?
Answer: The three basic questions of economics are:
* 1. What to produce? ➢ What should be produced in a world with limited resources?
* 2. How to produce? ➢ What resources should be used?
* 3. Who consumes what is produced? ➢ Who acquires the product?
Question: How do you think the owner of
this business would answer those three questions?
Answer: I guess, the owner will be answer according to their experiences and they might teach you some lessons.
Hope it helps, have a great day.✌️
