Factors of Production

Concept and Characteristics of Land, Labour, Capital and Organization

Notes

Land and Labour

The factors of production include three basic resources or factors of production they are land, labour, capital and organisation which are called inputs of production.

Capital and Organization

Capital is a man-made means of production which is used in a further production of goods and services. It is taken as a stock of financial assets which can be used to provide an income.Capital is the man-made factor of production.

Population Theory

This note contains the theory of population. Malthusian theory of population and Optimum theory of population are the well-known theory of population.

Partnership

A partnership is business is an agreement between two or more than partners to do a legal business. They agreed to provide all the resource required for business for the purpose of earning profit. Those people who invest money in the partnership are called partner.

Joint Stock Company

The joint stock company is an association of persons having a separate legal existence, perpetual succession, common seal, common capital etc. The joint stock company divides its capital into a large number of parts with each value where each part of capital is called share. Joint Stock Company is managed by the board of directors who is the representatives of shareholders. The member of the board is elected by the shareholders.

Sole Trading Concern

The business which is started, invested and managed by the single person is called sole trading concern. It is a one man business. This form of business is one of the oldest forms of business organization. The person who starts run sole trading is called sole trader or sole-proprietor