Tag: land,labour, capital and entrepreneur

Marshall said, "By land is meant not merely land in the strict sense of the world, but whole of the materials and forces which nature gives freely for man's aid in land and water, in air, light and heat"

TRUE,as land is a free gift of nature to human beings so that humans can utilize land for the production process.Hence the man did not pay any price for the acquired land .At that time concept of private property was also not there.

In economics, land is considered a primary factor of production with a fixed total supply, as it cannot be increased in quantity like labor or capital.

Fertility of land depends upon various factors but mainly on the climatic conditions,rainfall etc.Hence the fertility of land varies from places to places.

Minerals are formed from the decomposition of soil.The decomposition of soil occurs due to climatic conditions of that particular area.Hence the richness of mineral wealth varies from place to place.

An entrepreneur is defined by their role in identifying opportunities, initiating change, and managing the risks associated with starting a new enterprise.

 An entrepreneur uses his skills ,ideas and knowledge to run an organization and hence he conceives a business to transform his dream into reality.

An entrepreneur uses his skills and knowledge to make the production mechanism of a firm more efficient ,which is turn leads to the creation of profit/wealth.

An entrepreneur manages the functions of an organization and hence he must possess good negotiating skills in order to ensure coordination over all the departments of the organization.

An entrepreneur is responsible for motivating the employees .He also convey a sense of purpose in order to project an organizational goal and asks everyone to work hard to achieve that goal.