Question

New Business Plan – A Case Part-I Mr. Ahamed discovered an idea to start a new business venture in Oman after completion of his Business Graduation from Yale University. He wishes to study the entire economy of Oman for implementing his project in time and with proper execution. He collected data and found the following information i.e., the major earning of Oman economy is from Exports such as Crude oil and refinery, Natural Gas, Fishing, Minerals, Metals, Cement, Agriculture and Textiles etc., and domestic businesses like Fishing, Agriculture, Tourism, Real estate, Restaurant and Meat selling. As per 2018 censes the total population including other nationalities of the country is 4,829,473 million, the GDP of $ 203.959 Billion with Growth rate of 1.8% and Per- capita income is $18,970. Further he also found the up-coming projects like Fishing, Blue City, Oman Rail, Oman Khazzan Gas Project, Mina Al Sultan Qaboos Waterfront, and Modern Restaurant. Based on the above information, Mr. Ahamed wants to select the good business sector in Oman. Mr. Ahamed wishes to invest 30,000/- OMR, to develop the business venture in Oman. Mr. Ahamed decided to study the market scenario, demand and supply analysis in Oman. Based on the market demand and supply he will continue to do the business. One thing he will understand based on the information only Mr. Ahamed will start the excellent business. Assume as you Mr. Ahamed, how will give the answer for the below questions.

Questions: 1. Based on the data given which type of business should Mr Ahmed invest his money in? What are the reasons behind it? Explain.

question2. Discuss the opportunity cost of choosing the business. Explain.(3+2=5 Marks)

question3. Based on the case identify the various Central problems of economy which could be experienced while doing a business. Explain. (3+2=5 Marks)

question4. Elaborately discuss the Social Cost of the Business which Mr. Ahmed has chosen to invest in? Explain.

Answer 1

1) Mr. Ahamed will choose modern restaurant as first prefernce according to the data given because:

it is a great domestic business , a source of major earning then in upcoming projects again there is demand for restaurant project and above this this venture is interlinked with tourism and also this is the kind of business with less failures as grabing food cannot be out dated nor can be replaced or banned.

2)opportunity cost is basically the loss of opportunity to gone to avail the current one , so here the opportunity cost is zero because it is a refresh start but considering other option we can say that all the option of business given which bare not opted are the opportunity cost.

3)the various Central problems of economy which could be experienced while doing a business are:

• what to produce
• how to produce
• for whom to produce

4)the social cost what environment pay will be the garbage produced in bulk and noise pollution if have music corner ,etc.

the social cost he chooses to invest in is he is going to serve the 1 poor family daily and also whatever the leftover cooked food left daily will be distributed among the needy.