1. 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 Business Choices
Edexcel Business

2. 1.5.5 Business Choices In this topic you will learn about
Opportunity cost
Choices and potential trade-offs

3. 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

4. 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?

5. 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

6. 1.5.5 Business Choices In this topic you have learnt about
Opportunity cost
Choices and potential trade-offs