BUSINESS CHOICES Flashcards
1
Q
define opportunity costs
A
- the cost of the next best alternative is given up
Example: benefit lost from launching a new advertising campaign instead of investing in employee training
Key resources: money and time
2
Q
define trade-off
A
- compromise or loss of another option
Example: improving productivity may lower
quality
Need to consider strategic decisions; high
volume and low quality vs low volume and
high quality
