Revison Questions

Question 1

Opportunity costs

Answer 1

The cost of missing out on the next best opportunity.opportunity cost represents the benefit that could have been gained by taking a different decision

Question 2

Advantage of opportunity to a business of contingency planning

Answer 2

Minimises loss and damage 
Recover faster
Minimise risk of catastrophic loss 
Lower strategic risk 
Business more likely to survive 
Prepared for eventualities 
Worse case scenario can be prepared for

Question 3

Disadvantages of contingency planning

Answer 3

Time
Money
Opportunity cost
Wasted if negative event does not happen