1.5.5 Business Choices Flashcards
1
Q
Business choices
A
Every business faces limited resources and therefore have to make choices.
2
Q
Resources that are typically scarce in a business
A
- Finance
- Time
- Capacity
- Skills and capabilities
3
Q
Opportunity cost
A
The cost of missing out on the next best alternative when making a decision.
4
Q
What factors are considered when making a business decision?
A
- Potential sales from each idea
- Cash/financial commitment required.
- Whether the timing is right.
- Whether the decision fits skill set.
- Competitive landscape.
- Market research.
5
Q
Trade off
A
A negative consequence/compromise of a choice made by a business.
