1.5 Entrepreneurs 1.5.5 Business Choices Theme 1: Marketing and people Why did you choose Business as an A-Level? What other options were there? Why didn’t you choose Business plus the alternative options? 1.5 Entrepreneurs 1.5.5 Business Choices Edexcel Business

1.5.5 Business Choices In this topic you will learn about Opportunity cost Choices and potential trade-offs

The benefit lost of the next best alternative when making a choice Opportunity cost What do you think is meant by the term opportunity cost? Can you write a definition? The benefit lost of the next best alternative when making a choice

What are the trade-offs to the Government of student fees? Opportunity cost is the cost of the next best alternative However there may be a range of alternatives all of which have been given up All of these alternatives are referred to as ‘trade-offs’ In pairs: Write a definition of the term trade-off Support your definition with one example From your own experience From within a business Why do ‘trade-offs’ exist? Remember to show off your business terminology What are the trade-offs to the Government of student fees? http://www.bbc.co.uk/news/business-31658296

In pairs For each of the following business choices identify a possible trade-off To open an independent children’s day care nursery To locate on the high street To employ a new marketing assistant To launch a new variation of an existing product To pay dividends to shareholders

1.5.5 Business Choices In this topic you have learnt about Opportunity cost Choices and potential trade-offs