Notes

Marks 25
MC Mark 4

Factors of Production
1.) Land
2.) Labour
3.) Capital
4.) Entrepreneurship

Q6 Functions of HR
1.) Compensation
2.) Recruitment/Firing/Discipline
3.) Training
4.) Employee Relations
5.) Health and Safety

Q7 Definitions of terms and Ex
Automation is work done by more than one person using machines. (Assembly Line).
Consolidation is when small manufacturing businesses close down to create a large manufacturing site. (Domestic Airlines Industry)
Outsourcing hires another company to perform tasks, to cut costs down. (Honda)
Intellectual properties are the ideas or talent of a business. (Writers)
Information used to produce goods and services in a competitive market. (Customers, technology, competition, political conditions, and sources of supply)
Management is a company resource/people that run and make decisions that affect the business. (Managers)
Capital are assets invested in the business. (Money)
Entrepreneurship are people that combine factors of production to earn a profit. (Steve Jobs)
Liquid capital are assets that can be easily converted to money, while non-liquid capital is something that can not be converted easily. (Stocks)
Unskilled Labour are jobs that need little training and basic skills required. (Dishwasher)
Semi-skilled Labour are jobs that need some training and some skills required. (Cashier)
Skilled Labour are jobs that require training from an educational institution. (Police)
Professional Labour are jobs that are highly trained require education from college or university. (Engineer)
Employee turn over rate- a percentage of employees that leave every year (McDonald's)
Hourly Wages – common for part-time employees who are receiving minimum wage. (Construction Worker)
Salary – a fixed amount of money that employees receive on a regular schedule, such a weekly or monthly.
It is expressed as a yearly amount. (Firefighter)
Salary plus commission - a fixed amount of money with money based on employee’s sales. (Sales Representative)
Straight commission - a form of compensation solely based on the employee’s sales. (Sales Person)
Bonus – also called “variable pay”, is a reward for good performance (Stock Broker)
Performance-based pay or piecework is a compensation based on the amount of a particular product that an employee can make. (Clothing Sewer)
Fee for service – this has to do with an estimate of how much a job will cost in terms of time and material. (Decorator)
Royalty of Licensing Fee - this refers to a payment for the use of ideas and creativity. (Writer)
Stock options - employees are offered company shares at a price lower than the market price. This makes employees part owners of the company. (Stock Broker)

Q8 Matching
1.) Fuel and Energy
2.) Logging and Forestry
3.) Water
4.) Agriculture
5.) Mining
6.) Fishing and Trapping

Q9 Raw Materials, Ingredients, and Supply
Raw Materials are any goods used in the manufacturing of other goods.
Two types of Raw Material
Ingredients are raw materials combined or converted to create a finished product.
Supplies are raw materials are not part of the product but used to create the product.

Q10 Stages of Production
1.) Purchasing (Factors: Quality of raw materials, price, and additional costs)
2.) Processing (One item into another called conversion processing, like sugar cane to sugar)
3.) Quality Control (All products conform to standards, companies, government, or organization like ISO International Organization for Standards
4.) Grading (Act of checking the product against fixed standards, like apples)

Q11 Capital Bids Mark 4