3. Explain one example of opportunity cost for an individual planning to become an entrepreneur. [3]

[Sir Afzal Shad]

Q3. Explain one example of opportunity cost for an individual planning to become an entrepreneur. [3]

----
Possible Structure:
[KN]
[AN]
[AN+]

[Shanze Arsalan]

KN: One example of opportunity cost for an individual planning to become an entrepreneur is the choice between starting a new business and continuing in their current job.
AN: If they choose to keep their ob rather than starting a business of their own they won't be able to create more employment opportunities for other individuals
AN+: Because of this less wealth will be created and less people will be employed thus reducing GDP/ Bringing no positive change to the GDP of the economy.

I think i did the answer completely wrong over here

[zeemal rashid]

[KN] to become an entrepreneur, the individual might have to give up his holiday and free time for the business or he can stay as an individual and give up entrepreneurship
[AN] he would eventually have to choose one of the options as he cannot choose both of them
[AN+] thus, it would create opportunity cost for him as he decides which side he wants to choose and which to give up

[Aleezay Naseem]

Kn: opportunity cost refers to cost of forgone opportunities for opening a new business opportunity cost could be having a stable job
An: if an individual chooses to start a new business be their own boss but this decision comes with cost of giving up secure job
An: this way the individual gave up guaranteed salary , increments and benefits offered etc

[Muhammad_Faizan]

KN: if they are planning to open a fabrics their opportunity cost could be to open a clothes store
AN: as clothes and fabric use the same product and their earning margins differ
AN+: hence as clothes is in tertiary sector and frabric store is not the clothes store becomes the individuals opportunity cost

[Hamnah Naz]

[KN] The opportunity cost to an individual of planning to be a entrepreneur is a well paid and secure job. [AN] An individual may forgo the opportunity of finding a job that has a good pay on offer as well as job security by choosing to be an entrepreneur, and he may also lack the skills and experience which may increase high risks of failure. [AN+] This proves that an individual planning to become an entrepreneur not being able to make the new business survive not only looses the investment but also the secure job with a satisfactory level of pay that is being offered at that particular time.

[Haniya Abrar]

KN: Entrepreneur will have to choose between different suppliers when starting a business
AN: due to less investment , entrepreneur may be inclined to choose low quality cheap material but it is better to spend money on higher quality material
AN+: Investment on high quality raw material is a short term cost that will have greater return

[Syed huzaifa shah]

(kn) Risk of failure in the market.
(An) Owner can use that money on its luxuries like could buy a property or a car which is the cost to open a business with that money.
(An+) If business fails so owner could go in debt which could harm its personal assets as they could be confiscated by the creditor.

[zainabsahar]

(Kn) investment in large assets.
(An) the funds used by an individual to start a business could have potentially be used on assets such as property, stocks etc. which are less risky options. The individual faces the opportunity cost of safety of finances.
(An+) however by starting a business the individual has the potential to earn even more assets than that of high may have initially been invested.

[IsmailMansur21]

[KN]: One opportunity cost could be a full-time job.
[AN]: The person would need to sacrifice his job, which means giving up the guaranteed salary he used to receive.
[AN+]: He may need to lower his expenditure as he would not be getting a salary now and would need to spend his savings on starting the business.

[Hamna Zia]

[KN]When an individual decides to become an entrepreneur, they may have to lose their jobs or pass up on good career opportunities.
[AN] This can result in losing their salaries or bonuses if given.
[AN+]They also need to lower their expenses as no salary is given and instead, they would need to invest in their own business.

OR

[KN]When an individual decides to become an entrepreneur, they may have messed up work-life balance.
[AN]The individual may have to put in long hours and have to bear more stress than usual in order to grow their business.
[AN+] This could affect their daily life, routines, and relationships as well.

[usaid ashraf]

[KN]opportunity cost could be the full time job.
[AN] he will be sacrificing his guaranteed salary.
[AN+] he might have to lower his daily expenses as he will not be getting salary.

[Waiza batool]

[Kn] for an entrepreneur, opportunity cost is the income that can be earned from paid employment
[AN] the induvidual would loose his guaranteed salary
[AN+] this will have a major impact on his everyday life as the individual would need to cut costs.

[Sudais Ahmed]

Kn : An opportunity cost could be the skills and training he might be getting.
An: More skills and trained person is likely to get a highly paid job easily which he will be sacrificing in becoming an entrepreneur.
An+: Moreover, a business dont remain constant like jobs, he might be compromising on many of his needs and wants due to any up side down in business.

[Hania Asad]

kn: financial investments
an: when starting a business, an entrepreneur is likely to use their own savings, which they could have invested in other things such as shares, which are more reliable, therefore, the returns that could have been earned from shares become opportunity cost.
an+: however, using savings is a better way of raising finance as it does not increase liabilities.