Question

how does capital differ from organisation as a factor of production?​

Answer 1

Land involves natural resources labor is associated with human resources, capital includes manmade resources, and enterprise combines all the three factor, to carry out the production process. Therefore, all the four factors of production are equally important for the production activity of an organization.

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Answer 2

Capital is not considered as original factor of production. In economics, the term capital is associated with capital goods, such as plant, raw materials, fuel, and machinery. ... An organization requires a number of capital goods, such as tools and machinery, to produce goods.

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