Business choices 1.5.5 Flashcards
1
Q
What is the opportunity cost?
A
When choosing between different alternatives, the opportunity cost is the benefit lost from the next best alternative to the one that has been chosen.
2
Q
What are choices?
A
In business, deciding between alternative uses of resources.
3
Q
What are trade - offs?
A
In business, where a decision-maker faces a compromise between two different alternatives; for example, between paying dividends to shareholders and re-investing profits in the business.
4
Q
What are some Potential trade offs in situations in which the business might need to take?
A
- Design mix
- Market research
- Business ownership
- Promotion
- Pricing strategy
5
Q
What do businesses need to consider when they are making choices?
A
The opportunity cost
