Capital-refers to any manufactured product used by the business to make products. This category therefore includes all machinery, vehicles and office equipment used in businesses. Labour-is the human resource used by business organisations during production. It refers to the input of physical or mental activity by employees. Land-in the context of this classification is not only the site on which the business is located , but also all the natural resources it might use.
The functions of business. All businesses combine factors of production as an essential part of their production activities. To combine these factors, to engage in production and to achieve their objectives organisations undertake a number of functions. The major business functions include: Finance Production Human resources Marketing Administration Research and development. Finance.
A separate department normally carries out the finance function of the business. The finance department carries out a number of key activities. These are summarised in the diagrams beside. Production Production covers all the activities that must be undertaken to make firms products.
Human resources. In modern businesses, human resources management is now taking on the role previously carried out by personnel management. There is a very clear distinction between personnel management and human resource management. Personnel management considers the tasks involved in managing people-recruitment, selection and so fourth as separate elements. Human resource management (HRM) elevates the effective use of a businesss labour