Business: topic 5.1 0.0 / 5 ? Business Studies & EconomicsTopic 5.1 part 1GCSEEdexcel Created by: livkellCreated on: 21-01-18 18:46 A decision between one or more alternatives Choice 1 of 19 Resources are limited in supply Scarcity 2 of 19 Where the selection of one choice results in a loss of another Trade-off 3 of 19 The loss of the next most desired alternative when choosing a particular course of action Opportunity cost 4 of 19 The amount of money required to purchase a good or service Price 5 of 19 The value of sales in a time period, calculated by price x quantity Revenue 6 of 19 The quantity of a good or service a consumer would like to buy at a given price in a time period Demand 7 of 19 Where changing the price of a product by a certain amount leads to smaller change in demand Price insensitivity 8 of 19 A good or service that a consumer views as essential Necessity 9 of 19 A good or service which is a possible alternative to another good or service Substitute 10 of 19 Where changing the price by a certain amount results in a bigger change in demand Price sensitivity 11 of 19 Groups which are interested in the performance of a business Stakeholders 12 of 19 The owners of a limited company. They buy shares which represent part ownership of the company Shareholders 13 of 19 The body which investigates cases where firms merge or are taken over decide whether such activity is in the public interest Competition commission 14 of 19 The payments made to shareholder from the profits of a company Dividends 15 of 19 A group or an individual that is not directly involved in a decision or an action Third party 16 of 19 The effects of an economic decision on individuals and groups outside who are not directly involved in the decision Externalities 17 of 19 Those costs arising from businesses activity which are paid by people or organisations outside the firm Negative externalities 18 of 19 Those benefits arising from business activity which are experienced by people or organisations outside the firm Positive externalities 19 of 19
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