Chapter No.

1
Enterprise
Topic 1.1
What do businesses do?
 Businesses identify the needs of customers.

 They purchase the resources (Factors of

Production) required for production
 They produce goods and services which satisfy
customers’ needs, usually with the aim of
making a profit.
Consumer goods:
The physical and tangible goods sold to
the general public – they include
durable consumer goods, such as cars
and washing machines, and non-
durable consumer goods, such as food,
drinks and sweets that can
be used only once.
Consumer services:
The non-tangible products sold to
the general public such as banking,
transportation, educational services
etc.
Factors of production
Land Labour

Enterpris
Capital e
Land includes all
renewable and
non-renewable {
natural resources,
such as coal, oil,
and timber
Labour is a
human
resources
which includes
all forms of
mental and
physical efforts
Capital:
This includes all man-
made resources used in
 production, such as 
money to start a 
business, computers, 
machines, offices, 
factories, cars etc.
Enterprise
This is the skill and risk-
taking ability of the person
who brings the other
resources or factors of
production together to
produce a good or service,
such as the owner of a
business.