Business Notes Chapter 5.docx - Chapter 5 Factors of Production Production happens when an individual business or an organization makes a product

Business Notes Chapter 5.docx - Chapter 5 Factors of...

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Chapter 5 Factors of Production Production happens when an individual, business, or an organization, makes a product, provides a service, or generates an idea or concept. Natural Resources The six types of natural resources that primary industries supply use with are: -Agriculture -Fishing and Trapping -Labour -Capital -Information -Management Raw Materials Raw materials are any goods used in manufacturing of other goods. The two main types of raw materials. Ingredients- raw materials that are combined or converted and become a part of a finished product. Supplies- raw materials that do not become a part of the finished products but are use in the production process. Labour Labour includes all of the physical and mental (cognitive) work needed to produce goods and services. Businesses now automate and consolidate to save on labour costs. Outsourcing, the hiring of another company to perform tasks for any company, is another cost saving business choice.
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  • Fall '17
  • -
  • Business, Management, Supply chain management terms, Production and manufacturing

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