#15 & 16 Financial Concepts

Standard 15: Define and furnish examples of foundational financial concepts and terminology, including but not limited to financial statements, revenue, expenses, assets, liabilities, equity, net worth, profit, and net loss.  Demonstrate financial literacy and quantitative reasoning when discussing these concepts in the context of business operations.  Apply basic numeracy sills to understand financial phenomena such as interest and savings.
Standard 16: Differentiate between fixed and variable expenses on a business's balance sheet.  Select three of the expenses listed, draw conclusions as to their importance to the business, and analyze cost-cutting strategies a company might take to minimize expenses in each of the chosen categories.

Numerically Speaking

In an earlier lesson we learned about the Business Plan as a detailed road map created through extensive research that will hopefully help an entrepreneur gain financial help through investors.  The business plan also serves as a guide for owners to stay on track to meet projected goals.

Today we will look more specifically at the financial concepts and terminology in the context of business operations.

 Partner with your Text book - Chapter 36

• Follow along with the PowerPoint presentation as we look closely at these financial concepts.
• Let's complete a Balance Sheet together. (worksheets 382-383)

 Did you get that? 

Complete worksheets (pages 384 & 387)

#14 Business Plan

14) Explain the purpose of a business plan, and list the four major parts typically included(business description, management plan, marketing plan, and financial plan). Describe the importance of developing a business plan when seeding out potenetial investors or lenders.  In preparation for a future career as an owner or entrepreneur, develop an original business philosophy detailing one's beliefs for how a business should be run.

Would you loan me $2,000?

If I were to ask you for a loan for $2,000 (let's assume you have that much in your bank account) what would the first questions you would ask?

I'm sure you would have many questions about what I plan to do with the money, how you plan to get the money to pay me back and of course, when will I pay you back.

Now, let's say that if in your inquiries to me, it seems that I just decided today that I needed the money to purchase 100-150 bicycles that I intended to re-sell this spring.

• What other questions might you add to your list of inquiries? (ask me)
• Why would you be so interested in all the details of my business idea?

How are feeling about that loan now?

Would you be curious about how I calculated that I need to borrow $2,000?
Would you wonder who I though would be interested in buying my bicycles?
How would potential buyers find out about my bicycles for sale?

The Business Plan

In our free enterprise society, anyone that has the money and an idea can sell anything (legal) in our country. But to be successful, much planning and research must take place before you just start your business.

Banks and other lenders will have similar questions to what you wanted to know in the situation we talked about earlier.
Enter: the business plan!

Objectives

• Explain the purpose and importance of a business plan.
• Identify external planning considerations

 

See sample business plans here.

 

Graphic Organizer

Complete the graphic organizers/packet by reading pages 819-827, 829-833.  (Worksheet pages: 190, 22, 26, 191, 373, 372)

Be prepared to discuss findings in next class period.


2 Minute video about writing a Business Plan by Small Business Administration

Taxes: Who Pays and How Much?

Taxes:  Who Pays and How Much?

Filling out a W-4 when you start a new job.

Std 11: State of the Community

11)  Drawing on resources such as the Tennessee Department of Labor and Workforce Development, the Tennessee Department of Economic and Community Development, and local Chambers of commerce or Development Districts, investigate the current economic situation in the county and compare it to the economic situation of the state.

State of the Community Report

Using the resources below and others, investigate the current economic situation in the county and compare it to the economic situation of the state.  Write a report on the findings, citing evidence from sources researched.  Findings should include:

1. The unemployment rate (6 pts)
2. Occupation growth/decline (6pts)
3. Population changes (6 pts)
4. Draw conclusions about the implications of such conditions on the creation, expansion, and relocation of businesses. (6 pts)
1. Section Heading:  "Conclusion: Creation, Expansion, and Relocation of Businesses"  (min. 1 paragraph)
5. Grammar, organization (neatness), deadline (6pts) 
1. 12 pt font, Times New Roman
2. Headings for each topic above
3. Pie/bar charts for both state and community (no more than 2" tall)
4. Include legends for charts 

Total Points: 30 points (test grade)

Resources:

Tennessee Department of Labor and Workforce Development
Tennessee Department of Economic and Community Development
Brownsville/Haywood County Chamber of Commerce
Brownsville Unemployment Rate
Brownsville Economic Stats

Economic Systems - Standard 13

Standard 13:  Cite the advantages and disadvantages of a market economy, a command economy, and a mixed economy.  Discuss the relationships between consumers, business, and government in various economic systems, and analyze differences in the rights and responsibilities of these factors in countries where these distinctive systems exist.

Types of Economic Systems

Read pages 63-69 in textbook.

Nations must answer these three basic economic questions about how best to use limited economic resources to get the goods and services the country needs.
1.  What goods and services should be produced?
2.  How should the goods and services be produced?
3.  For whom should the goods and services be produced and distributed?

Based on how countries answer these questions, economists have classified economic systems into three broad categories.

Traditional Economies

What to produce?  little choice, what they need to survive using natural resources
How to produce?  usually use simple, handmade tools and their ingenuity, learned from ancestors
Produce for whom?  for themselves, any excess are traded among residents

Market Economies

Market economies are propelled by the rights of individuals and companies to produce and sell through competition without government involvement.

What to produce?  consumers decide by purchases
How to produce?  businesses decide by keeping costs low in hopes of producing high profits
For whom?  people with money

Command Economies

A country's government decides what, how, and for whom goods and services will be produced.

Mixed Economies

Will be a mixture of 2 or more of these economies but may "lean" in a certain direction.

Student Activity

After reading pages 65-69, with a partner complete the graphic organizer that illustrates:

1. Complete the Venn diagram to record similarities and differences among market and command economies.
2. (On back of worksheet:)Advantages and disadvantages of each economy  (5 points)
3.  Explain relationships between consumers, business, and government in various economic systems (5 points)
4. Give at least 2 examples of countries that fall into each of these categories. (5 points)

Technological Innovations Timeline

Standard 12) Draw on a range of print and digital sources, such as articles, videos, and textbooks, to create a timeline or similar narrative detailing the evolution of business in the U.S.  Annotate the timeline to explain the impact that various technological innovations have had on consumer buying behavior over time.  

Technological Innovations Timeline

As a class we are going to create a timeline of inventions that have impacted business in the U.S.

You will draw a slip to determine the invention that you will add to our timeline.  See the rubric below to determine information that must be added by you to the timeline:

Rubric

All of the following must fit on Publisher or a Word doc with a red arrow pointing to the year invented on our timeline. (See sample)

1. Name of invention or innovative idea. 5 points
2. Name of inventor. 5 points
3. Year of invention. 5 points
4. What was the purpose of the invention? 5 points
5. State if this was a new idea or an improvement to an existing product? 5 points
6. How did this invention affect business? 5 points
7. Include a drawing or print of the invention (check with your teacher before printing). 5 points
8. Include your name and  class period on the timeline entry. 5 points
9. Be prepared to tell about your invention to the class before we attach to the timeline. 5 points

HCE Bellwork Link

Click on this link to use the Hospitality Cluster Exam questions as bell work:


Quizlet HCE
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