Cambridge O Level Business Studies · Syllabus 7115 · Understanding Business Activity
Factors of Production
What is Factors of Production?
The four categories of resource that every business combines to produce goods or services: land, meaning natural resources and sites; labour, meaning human effort and skill; capital, meaning man-made resources such as machinery and buildings used to produce; and enterprise, meaning the organising of the other three factors and the acceptance of business risk.
This definition is part of the Understanding Business Activity chapter in Cambridge O Level Business Studies.
Last reviewed Syllabus 2026