Factors of production in business expansion

Steps:

• Recall the four factors of production: land (natural resources), labour (human effort), capital (tools and equipment), and enterprise (risk-taking and organization).
• Identify vans as capital, since they are manufactured goods used to produce delivery services.
• Identify drivers as labour, since they provide the human workforce for operations.
• Confirm no changes to land (no new sites or resources acquired) or enterprise (Sonia's ownership role unchanged).

Why A is correct:

• Capital and labour definitions directly apply: capital encompasses vehicles for production, and labour includes hired workers, both increased here per standard economic classification.

Why the others are wrong:

• B: Land unchanged, as no natural resources or property were acquired.
• C: Enterprise unchanged, as it refers to Sonia's entrepreneurial function, not the expansion actions.
• D: Land unchanged, with only labour modified.

Final answer: A