This document discusses the concepts of production and business organization. It defines production as the process of creating goods, products, and services using the factors of land, capital, labor, and entrepreneurship. It states that production is necessary to solve the basic economic problem of scarcity by enabling the allocation of resources. It also explains that business organizations are needed to carry out large-scale production in order to satisfy public demand, gather sufficient resources for continuous production, and efficiently manage the production process.

1. PRODUCTION &
BUSINESS
ORGANIZATION

2. PRODUCTION

3.  Everything that we see
around us is the result of
production.
 Every GOOD, PRODUCT or
SERVICE is the consequence
of production.

4.  We can observe, as we
delve further into the
study of economics, that
much of its ideas revolve
around the concept of
production.

5. THE CONCEPT OF
PRODUCTION

6.  We have studied the basic
economic problem — that of
scarcity — and with
people’s unlimited wants
and needs, that would
indeed be a problem.

7.  Economics have pointed to
the power allocation of
resources as the main solution
to the problem.
However, nothing could be
allocated if it is not first
produced.

8.  Production of goods and
services is the first stages in
solving the problem of scarcity
and makes possible the
allocation of resources.

9. THE FACTORS OF
PRODUCTION

10. 1. LAND
includes arable
land, forests and
fields, any territory, and
natural resources such as
mineral and water resources
that are used in
production.

11. 2. CAPITAL
consists of all the
machinery, equipment, and
facilities that are used
to produce goods or
services.

12. 3. LABOR
consists of physical and
mental
exertions, talents, and
abilities provided people
and workers towards the
production of a goods or
services

13. 4. ENTREPRENEURSHIP
is the skill of person in
combining land, capital, and
labor to come up with good
or service which would
benefits other people, and
him or her personality.

14. BUSINESS
ORGANIZATION

15.  BUSINESS ORGANIZATION are
needed to accomplish this
task of production.

16.  Individuals simply cannot
perform the production of
goods in large quantities in
order to satisfy the wants
and needs of general
populations.

17.  So why do we need
business organizations and
large firms to produce
goods and services? This is
because of the following
reasons:

18. a) Business organizations can
produce large quantities of
goods and services that can
sufficiently satisfy the
demand of the large
public, such as thousands of
air conditioning units, or
tons of bread.

19. b) Business organizations
can gather enough
resources to ensure
continuous production over
a period of time.

20. c) Business organization
provide an efficient
management of production.