Back To Course
IAAP CAP Exam Study Guide - Certified Administrative Professional39 chapters | 314 lessons | 29 flashcard sets
Video: What are Physical Resources in Business?
Every company has the need for some physical resources, some more than others. Depending on the type of business, the requirements for physical resources may be extreme.What are Physical Resources in Business?
You must create an account to continue watching
Register for a free trial
Are you a student or a teacher?
Start Your Free Trial To Continue Watching
As a member, you'll also get unlimited access to over 75,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.
Free 5-day trialIt only takes a few minutes to set up and you can cancel at any time.
Already registered? Login here for access
Back
Your next lesson will play in
10 seconds
Lesson Transcript
Instructor:
Tara Schofield
Every company has the need for some physical resources, some more than others. Depending on the type of business, the requirements for physical resources may be extreme.
Features of Physical Resources
Every business needs resources, whether it's people, money, suppliers, or time. The physical resources include tangible items that are necessary and available for a business to function. These are items that take space, have a value, and are used in the operation of the company.
Physical resources are necessary for all types of business. Product-based businesses use physical resources for providing the goods for sale and for the operation of the business. Service-based businesses use physical resources to facilitate the delivery of the service, such as having a space to work, tools that are needed for the service, and resources used to support the service.
Let's imagine you own a dry cleaning business. The company offers in-house, same-day service. As a result, you must have washers, dryers, steamers, irons, tables, and racks to hold the clothes. These items represent the physical resources of your business.
Materials
Materials that are resources are raw goods that will be used in the production of other products. For a kitchen supply factory, an example of a material is metal; something to shape and mold into forks, knives, and spoons. The cutlery is then a product that is sold in retail stores. The materials are not used for the operation of the business, but are a good that will be transformed and sold as a new product. For our example of the dry cleaning business, you do not sell products, only your dry cleaning services. Therefore, you have few, if any, materials.
Buildings and Facilities
The physical building you work in is a part of the physical resources of a company. Whether the space is owned or rented, it is used for the purpose of operating your business. By having this space available, you are able to complete your work. There are some occasions when the building and facilities are the revenue generators of the business. For instance, if you own a conference center and rent space for events and meetings, the building and facility is a physical resource that also earns income. Your dry cleaning company includes a parking lot and a building where the equipment is housed for the purpose of cleaning clothes. The building is a resource where the business is operated.
Machinery and Supplies
Machinery can be an extremely costly expense for most companies. Depending on the type of business, machinery can be a sizable resource. A manufacturing or production company will require substantial types of machinery. Have you ever seen the inside of a bread factory or the like? Huge machines, interlinked and taking up an enormous amount of space. On the other hand, an online business that offers education and information does not need much equipment beyond computer hardware and basic office machines, like photo copiers, phones, etc. Your dry cleaning business requires an ample amount of machinery, including washers, dryers, and steamers. Without machinery, your business would be virtually impossible to operate.
Most businesses also require supplies for various aspects of their production. Even if a company provides a service, there are likely some form of supply materials that are needed. For instance, if you own a full-service car wash, your services require soap, clothes, and towels. These materials are needed for the fulfillment of the service but are not sold as a stand-alone product. Returning to the dry cleaning business, you have many supplies available for your work. Not only do you have laundry detergent and starch, you also have hangers and bags to wrap the clothes in. These materials are some of the physical resources you have available for your work.
Energy
Energy is also used as a resource for fueling operations or could be a product that is delivered, such as propane or electricity. It is a necessary resource to conduct all aspects of business. You couldn't run your dry cleaning business without electricity to run the machines, light the building, and power your phones, cash registers, and computers.
Lesson Summary
Let's review. Physical resources are tangible items that are used in the operation of the business. Some of the resources are used to operate the business or provide products and services. Other resources are available to support the actions of the company. Some of the most common physical resources include raw materials, buildings and facilities, machinery, energy, and supplies. As we saw with our dry cleaning business example, each business has different needs for materials, buildings, machinery, and supplies, while all businesses need energy to conduct their operations.
To unlock this lesson you must be a Study.com Member.
Create your account
Register for a free trial
Are you a student or a teacher?
Unlock Your Education
See for yourself why 30 million people use Study.com
Become a Study.com member and start learning now.
Become a MemberAlready a member? Log In
BackEarning College Credit
Did you know… We have over 160 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
You are viewing lesson
Lesson
1 in chapter 15 of the course:
What are Physical Resources in Business? Related Study Materials
- GRE Information Guide
- Computer Science 310: Current Trends in Computer Science & IT
- Earth Science 105: Introduction to Oceanography
- Computer Science 331: Cybersecurity Risk Analysis Management
- Computer Science 336: Network Forensics
- Practical Applications for Excel
- Practical Applications in Business Law
- Practical Applications for How to Network
- Practical Application for Technical Writing
- Practical Applications for Workplace Communications with Computers
- MEGA Test Accomodations
- Study.com Grant for Teachers
- What are the MEGA Tests?
- MOGEA Test Score Information
- ASWB Prep Product Comparison
- What is the MOGEA Test?
- TASC Exam Registration Information
Latest Courses
- Promoting Motor Learning With Activities, Sports & Games
- How to Teach Conflict Resolution to Kids
- Witchcraft in the Jacobean Era
- Best Practices for Teaching Gifted Students
- Practical Application: Principles of Composition in Graphic Design Infographic
- Recursion & Recursive Algorithms in Python: Definition & Examples
- Practical Application: Five Major Consumer Rights Infographic
- Food & Beverage Service & Operations: Assignment 2 - Research Paper
- Quiz & Worksheet - Aristotelian Virtue Ethics
- Quiz & Worksheet - Assessing Diverse Learners
- Quiz & Worksheet - Citizen Journalism Overview
- Quiz & Worksheet - Neolithic Period Overview
- Quiz & Worksheet - When to Intercede in Conflict as a Manager
- Flashcards - Measurement & Experimental Design
- Flashcards - Stars & Celestial Bodies
Latest Lessons
- Prentice Hall Chemistry: Online Textbook Help
- Geography 101: Human & Cultural Geography
- Supplemental Math: Study Aid
- Calculus Syllabus Resource & Lesson Plans
- Shakespeare Study Guide
- Urinary Systems & Structures
- FTCE: Literal Reading Comprehension
- Quiz & Worksheet - Bacterial Transformation Biology Lab
- Quiz & Worksheet - Changing Life Expectancy in America
- Quiz & Worksheet - The Renal Tubule
- Quiz & Worksheet - Olfactory Bulb and the Nose
- Quiz & Worksheet - How Muscular Contraction Causes Articulation
Popular Courses
- Freud and Erikson's Approaches to Psychoanalytic Theory: Differences & Analysis
- Employee Assistance Program: Definition & Benefits
- What Is the International Reading Association?
- Creative Nonfiction Writing Exercises
- Aerospace Engineering Scholarships for High School
- Fiction Writing Prompts
- Poetry Writing Prompts
- What Does Redshirt Mean in Kindergarten?
- How to Pass the Civil Service Exam
- California Biology Standards for High School
- Homeschooling in Montana
- Homeschooling in Canada
Popular Lessons
Math
Social Sciences
Science
Business
Humanities
Education
History
Art and Design
Tech and Engineering
- Tech and Engineering - Videos
- Tech and Engineering - Quizzes
- Tech and Engineering - Questions & Answers
Health and Medicine
Explore our library of over 75,000 lessons
Browse by subject
