1.5.5 Business Choices Flashcards
1
Q
Entrepreneurs and businesses often have to make…
A
Choices
2
Q
Choices
Deciding between al..
A
deciding between alternative use of resources
3
Q
opportunity cost
“Value”
A
The value of next best alternative foregone
4
Q
An example of opportunity cost
A
e.g spending on staff training instead of spending on marketing/advertising campaigns
5
Q
Trade off
A
opting for one choice means compromising another
6
Q
Example of trade off
A
Minimising cost of making a product so it can be cheaper & reach more sales
Trade off might be lower quality
