(i) Identifying profitable investible opportunities
(ii) Deciding the location of the production unit
(iii) Making innovations

(i) Physical Capital or Material Resources, Ex. Machinery, tools, buildings, etc.
(ii) Money capital or Monetary Resources, Ex. Bank deposits, shares and securities, etc.
(iii) Human capital or Human Resources Ex. Investments in education, training and health.

Division of labour means dividing the process of production into distinct and several component processes and assigning each component in the hands of a labour or a set of labourers, who are specialists in that particular process.

Alfred Marshall defines labour as; 'the use of body or mind, partly or wholly, with a view to secure an income apart from the pleasure derived from the work'.

The factors of production
(i) Land
(ii) Labour
(iii) Capital
(iv) Organization

There are three types of production
(i) Primary production
(ii) Secondary Production
(iii) Tertiary or Service Production

(i) Form utility,
(ii) Time utility and
(iii) Place utility

Utility means want satisfying power of a product.

Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption (the output).

The entrepreneur is also called 'Organizer'. In, modem times, an entrepreneur is called 'the changing agent of the society'.

(i) An entrepreneur is a person who combines the different factors of production (land, labour and capital), in the right proportion
(ii) Initiates the process of production and bears the risk involved in it.
(iii) He is not only responsible for producing the socially desirable output but also to increase the social welfare.
(iv) Identifying profitable investible opportunities
(v) Deciding the location of the production unit
(vi) Making innovations
(vii) Deciding the reward payment
(viii) Taking risks and facing uncertainties

Types of Utility
(i) Form utility:
If the physical form of a commodity is changed, its utility may increase. Eg. Cotton increases, if it is converted into clothes.
(ii) Place utility:
If a commodity is transported from one place to another, its utility may increase. Eg. If rice transported to Tamilnadu to Kerala, its utility will be more.
(iii) Time utility:
If the commodity is stored for future usage, its utility may increase. Eg. Agricultural commodities like Paddy, Wheat, etc. are stored for the regular uses of consumers throughout the year.