It is always profit motive.Ĥ) Co-operative Enterprise: The business is run on co-operative principles. They do not know each other and hence the management of the business is done by few people i.e. The number are too less and it is possible to know each other and combined action can be taken easily.ģ) Joint-stock companies: The owner members are large size and numerous. He can introduce new method or commodity in the production process or in business.ġ) Individual Enterprise: Business owned and run by single person.Ģ) Partnership: Business is owned and run by more than one but few persons. Risk taking is therefore becomes an important function of an organizer.Ħ) Innovation: A successful organizer is always innovative. The business can not be always in profit. Therefore control is also important.ĥ) Risk taking: Risk means uncertainty.
Because of changes in situation in respect of marketing, Govt. Thus, organize executes the business in a proper way.ĭifference between Pure Line and Mass SelectionĤ) Control: Organizer is keeping watch on changing situation. Here planning of business is undertaken.Ģ) Organization: Organizer now combines the land, labour and capital resources and starts the business or production.ģ) Direction and supervision: During the course of production proper direction and timely supervision is required. Thus, organization would absent perhaps there would not be any production.įun ctions of organizer (Entrepreneur): The following are the function of organizer.ġ) Initiation: Taking the review of situation and availability of resources organizer initiates a business or production. They lay scattered hence these three needs to he combined and It is the job of organizer. The other factors land is possessed by land owner, capital is possessed by capitalist and labourer is only ready to offer. Therefore whole time devotion of organizer is required for successful business. In view of this the job of organizer becomes very important. Hence proper planning and execution of business is necessary.
The organization if done properly the production process will not hamper. A small happening in the country or abroad influences the business. Importance of Organization (Enterprise): Now a day, organization is very important as Production process has become too much complicated one. The man who undertakes all this work is called as organizer or Entrepreneur. Organization implies not only running the business but also shouldering the loss, if any. land, labour and capital together to undertake a business or production process. Organization (Enterprise): Organization of Enterprises means to plan a business, to start it and run it. Q.Factors of Production – Organization (Enterprise) Problem: All things used in producing goods, services, buildings, ideas are Read about the Characteristics of Entrepreneurship in detail here.
He is the person who decidesĪ person who takes these decisions along with the associated risk is an entrepreneur. Capital is a manmade factor of production.Īn entrepreneur is a person who brings other factors of production in one place.It includes factories, machinery, tools, equipment, raw materials, wealth etc. CharacteristicĬapital refers to all manmade resources used in the production process. It is the worker who applies their efforts, abilities, and skills to produce. The land is fixed and limited in supply.Īll human effort that assists in production is labour.Characteristics of Land as a Factor of Production All gifts of nature such as rivers, oceans, land, climate, mountains, mines, forests etc. It is the primary and natural factor of production. All natural resources either on the surface of the earth or below the surface of the earth or above the surface of the earth is Land. Types of Factors of Productionįactors of production have been categorized into four types. Factors of production are the parameters which affect the output of production. They are the starting point of the production process. They are the inputs for the process of production. These are the various factors by mean any resource is transformed into a more useful commodity or service. Factors of ProductionĪnything that helps in production is the factor of production. Let us understand what we mean by the factors of production and their types. To make an origami, we need paper, money to buy it, and the most important technique of folding. Consider a simple example of paper crafting. These materials are the various factors of production. For making or producing something, we need some tangible and intangible materials. Production is an outcome of economic activity. It is a process of combining various inputs to make something for consumptions.
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