1.5.5 business choices Flashcards
1
Q
what are business choices?
A
a business will consider a number of factors when making decisions. the decisions will either lead to opportunity costs and trade-offs
2
Q
what are opportunity costs?
A
is the benefit lost from the next best alternative
3
Q
what is a trade-off?
A
a trade-off will often involve the loss or compromise of another option,
e.g improving productivity may decrease quality
4
Q
how do businesses decide on choices?
A
- the probability of success
- balance short term gains with long term benefits
- risks vs rewards
- gauging support
- comparing ads and dis of each option
- investment appraisal
