The basic resources a business uses to produce goods and services are called factors o

Land, water, mineral deposits, and trees are good examples of natural resources. For example, Exxon Corporation, the world's largest oil company, makes use of a wide variety of natural resources. It must obviously have vast quantities of crude oil to process each year. But Exxon also needs the land where the oil is located, as well as land for its refineries and pipelines.

The people who work for a company represent the second factor of production, labor. Sometimes called human resources, labor is the mental and physical capabilities of people. Exxon employs over 150,000 people worldwide. Carrying out the business of such a huge company requires labor force with a wide variety of skills ranging from managers to geologists to truck drivers.

Obtaining and using material resources and labor requires capital, the funds needed to operate an enterprise. Capital is needed to start any business. Capital is also needed to keep the business operating and growing. Exxon's annual drilling costs alone run into the billions of dollars.

Finally, many economic systems need entrepreneurs to function. Entrepreneurs are those people who accept the opportunities and risks involved in creating and operating businesses. They are the people who start new businesses and who make the decisions that allow small businesses to grow into larger ones. Exxon Corporation started as an

entrepreneurial venture. Although it did not acquire its current name until 1973, its roots can be traced to 1862 when John D. Rockefeller and Murice B. Clark decided to establish a petroleum-refining firm.

26. Factors of production refer to ().

A. natural resources and capital

B. labor and entrepreneurs

C. both A and B

27. The labor force needed in Exxon Corporation are ().

A. people who have a variety of skills

B. only geologists and truck drivers

C. managers to run the company

28. Exxon's annual drilling costs alone run into the billions of dollars. 'run into' here means ().

A. divide

B. reach

C. meet

29. The funds needed to operate an enterprise are referred to as ().

A. capital

B. resources

C. labor

30. They are the people () start new business and make the decisions.

A. which

B. whom

C. who