(a) Mention and explain the four business resources. (b) Explain four ways by which government regulates business.

Answer Details

(a) The four business resources

1. Land (natural resources): all free gifts of nature used in production, such as land itself, minerals, forests, rivers and climate. Its reward is rent.
2. Labour (human resource): all human physical and mental effort directed at production, including skilled and unskilled workers. Its reward is wages/salaries.
3. Capital: man-made assets and money used to produce further wealth, such as machinery, buildings, tools and finance. Its reward is interest.
4. Entrepreneur (management): the person who organises and combines the other resources, takes business risks and makes decisions. His reward is profit.

(b) Four ways government regulates business

1. Registration and licensing: government requires businesses to register their names and obtain licences before operating, so as to control entry and standards.
2. Legislation and standards: government makes laws and sets standards (through bodies such as SON and NAFDAC) on quality, weights, measures and safety, which businesses must obey.
3. Taxation: government imposes taxes, duties and levies on businesses, and uses tax incentives or high rates to encourage or discourage particular activities.
4. Price and trade control: government fixes prices of certain goods, controls imports and exports through tariffs and quotas, and prohibits harmful or illegal trade.