22. Business choices

Question 1

choices

Answer 1

in business, deciding between alternative uses of resources

Question 2

opportunity cost

Answer 2

when choosing between different alternatives, the opportunity of cost is the benefit lost from the next best alternative to the one that has been chosen

Question 3

trade-offs

Answer 3

In business, where a decision maker faces a compromise between two different alternatives; for example between paying dividends to shareholder and reinvesting prodits in the business