could someone tell me please
to which factor of production does shareholder applies(land labour capital or enterprise)?
thanks alot for help :)
Shareholders provide capital.
why they cannot be applied to enterprise???
Check these definitions of "enterprise" and then explain how shareholders are a factor.
http://dictionary.reference.com/browse/enterprise
The factor of production that shareholders apply is capital.
To understand this, let's first define what factors of production are. Factors of production are the inputs that are combined in the production process to create goods and services. The four main factors of production are land, labor, capital, and entrepreneurship/enterprise.
- Land refers to all natural resources such as land itself, minerals, water, and other raw materials.
- Labor includes all human effort, skills, and abilities used in the production process.
- Capital represents all man-made resources used in production, including buildings, machinery, equipment, and money.
- Enterprise or entrepreneurship refers to the human skill and initiative to organize the other factors of production and take on the risk of running a business.
Shareholders, as the owners of a corporation, provide capital to the company by purchasing shares or stocks. The capital they invest is then used to finance the company's operations, such as purchasing assets, funding research and development, or expanding the business.
Therefore, shareholders apply their capital as a factor of production in the production process.