Needs and wants Needs Clothing Shelter Food Needs

+ Needs and wants Needs Clothing Shelter Food

+ Needs and wants Wants Clothing Shelter Food Jeans House Burger Party Dress Apartment Pizza

+ Scale of Operations n Activity 1: List 3 major international businesses and 3 smaller businesses that operate in their own country and 3 local businesses. Answer here:

+ Private sector: private businesses and enterprises Private Sector: Business activity owned financed and controlled by private individuals

+ Public sector: businesses owned and run by the government are public enterprises Public Sector: Business Activity owned, financed and controlled by the state through government or local authorities n Government – key departments set policy and monitor implementation n Local Authorities – County Councils, District Councils n Schools n Hospitals n Libraries n Public Corporations – BBC n Transport

+ Non-profit-making: a third type of enterprise Non-profit-making organisations include charities and voluntary organisations. These organisations are set up to fulfil a perceived social need or to provide help to a specific section of the community.

+ Activity 1. 3 1. Investigate the different types of business in your local area. You should find examples of private enterprise, public enterprise, and non-profit-making activity. 2. Identify the objectives of each. Type Private sector Public sector Non-profit-mak. Ing Organisation Objective

Factors of production: Land, Labour, + Capital and Enterprise Land refers to all the resources that occur naturally, however some resources are scarce! Coal, Zinc and Gold are examples of scarce land resources. Fish is another land resource. Labour is the effort of work provided by people. Labour-intensive production can often be found in many developing countries. Labour-intensive production means labour is plentiful and relatively cheap compared with the technology available to do the job. In more industrialised countries such as the UK labour-intensive production can be more expensive in terms of wages than the cost of running machinery. Capital includes items used in the production of goods and services made by people. These include: • Buildings • Machinery • Equipment Finance required to purchase these items Production that uses a high proportion of capital compared to labour is called capital-intensive. Capital-intensive production can be seen as a cheaper and more efficient production using the latest technology than by hand (labour-intensive) Enterprise is the ability, skill and enthusiasm to take risks involved in developing a business idea and gathering appropriate resources. All businesses combine factors of production to produce goods and services that people want to buy. A large company like Kuwait Petroleum Corporation will use all four elements to produce the final product (petrol or diesel). 1. Land- oil wells and refineries 2. Labour- staff 3. Capital- drilling equipment, pipelines, office buildings 4. Enterprise- the skill of senior management

+ Activity 1. 4 Construct a table like the one shown below. Complete your table with examples of the types of resources or factors of production used by your selected business. The first line of the table has been completed as an illustration. Factors of production Business Farm Land for grazing animals or growing crops Labour Farm workers Capital Tractors Enterprise Skills and efforts of the farmer in setting up and running the farm