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How do you categorize business resources?

Types and use of Business resources.

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3 answers

Business resources, also known as factors of production, consist of land and labor, along with capital and enterprise. Land means natural resources, which provide the raw materials for components, machinery, buildings and transport mechanisms. Labor equates to human resources and it includes all the people involved in your company: employees, fellow staff members and everyone in the supply chain.

Capital usually means money, but it also means everything made from raw materials. Capital includes all of the components, machines, tools and containers used to manufacture, store, transport, display, demonstrate and distribute your products or services.Enterprise means the drive to achieve something. It refers to the processes used to make decisions, create your business model and push for continuous improvement in your company. Enterprise includes marketing your brand, maintaining your company image and outperforming your competition.

In sum, everything serves as a business resource, from natural resources and farm products to machinery and office equipment. Business resources also include mentors, employees and all of the businesses that support your supply chain. The term also covers the government agencies responsible for collecting taxes and fees, and for enforcing regulations and laws.

Every one of those elements supports your ultimate success as a business. Nevertheless, the business resources that matter most consist of the websites and agencies that allow you to conduct market research and help you develop a business plan. Some assist you with choosing an SEO-optimized name and web presence that will grow with your company and reflect your values and vision. Others provide advice to prevent lawsuits over trademarks and market conditions. Some of these websites and agencies help you avoid liabilities and comply with wage and hour laws, equal opportunity regulations and workplace safety issues.

Report Aprilluloh's answer

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Thanks so much for taking your time to give valuable explanations Mr. Yusuf it’s a great honor to connect and looking forward to your more positive contributions.

Report Cordon's answer

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Another way to look at this is through the Balance Sheet. Assets represent resources that serve one primary purpose: Generate Revenues. Assets are broken down and reported on the Balance Sheet which is one of the financial statements that is typically prepared and analyzed to assess overall business health.

However, I think Aprilluloh Yusuf has touched on something very important. Not all of your resources will end up getting reported on the Balance Sheet. This has become a big issue for companies in the United States. For example, talent, leadership and brand recognition are important resources for a business; but these assets do not get reported on the Balance Sheet.

So I would tend to concur with Aprilluloh Yusuf – you need to take a very broad view of your resources and not restrict yourself to only recognizing assets on the Balance Sheet. But if you want to take a formal reporting approach to resources, then you should at least attempt to capture and report Assets on a Balance Sheet for your business. This is the basic standard by which all businesses in the United States follow – report and categorize your resources on the Balance Sheet.

Report Matt's answer

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