Answered

2017
Match each word with its best definition.
risk
the cost of using one resource over
another
income
personal finances
opportunity cost
budget
Intro
the chance or possibility of loss
money earned
an individual's assets and management
of them
a plan that balances available resources
and expenses
Done



Answer :

GinnyAnswer

Final answer:

Risk and opportunity cost are essential concepts in business for making informed financial decisions and managing resources effectively.


Explanation:

Risk and Opportunity Cost in Business

Risk is the likelihood of a negative outcome in an investment or decision. It can be measured by the dispersion in possible outcomes, where a greater dispersion implies more risk. On the other hand, opportunity cost is the value of the best alternative forgone when making a choice due to limited resources.

For example, if a company decides to invest in Project A, the opportunity cost would be the potential benefits and profits that could have been gained by choosing Project B instead.

Understanding risk and opportunity cost is crucial for making informed financial decisions and managing resources effectively in businesses.


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