Question

A natural resource, such as fishing territories, is considered an example of :

A) only capital.
B) both land and labor.
C) land only.
D) land, labor, capital and entrepreneurship.

Answer 1

Answer: Option C

Explanation: In simple words, land refers to the place where the core operations of the business have to happen initially such as manufacturing, administration etc.

Capital refers to the resources that are invested by owners with the objective of operating business. And labor refers to the man force employed in business for operations.

Hence fishing territory is a land as it is not invested by any owner and without any employment of workforce it does not have any utility.