Part A: Design

Session Two: The Business World

Objectives

Define and explain the function of a business Identify the characteristics of a good

company Engage student in identifying their personal

strengths

Vocabulary

Business Ethics Expense Job application Loss Product

Profit Rent Revenue Salary service

BizWorld Memo 2 (S3)

Complete BizWorld Memo 2 in your Student Packet.

Class discussion.

Memo 2 Discussion

Message:Congratulations! You and a group of your classmates are going to start andrun your own business. The following list includes steps that every company must complete in order to be successful. Number the steps (1 to 6) in the order you think they should happen.

___ Sell your product___ Manufacture, or make a product efficiently___ Market and advertise your product___ Design a product___ Determine whether your company is profitable___ Raise money to finance your company

Two additional steps for a company to succeed.

Memo 2 Discussion

5 Sell your product 3 Manufacture, or make a product efficiently 4 Market and advertise your product 2 Design a product 6 Determine whether your company is profitable 1 Raise money to finance your company

Two additional steps for a company to succeed.Examples: estimate expenses—hire the best employees

What is a Business? (30 min.)

A business is a sole proprietor, partnership, or corporation that creates and sells a product or service.

What are some examples of a business? What are some things you can purchase from a

business? From the largest corporation to the smallest store, all

businesses are trying to do the same thing – make money!

How do businesses make and spend money?

A business can sell a product (something produced by humans or machine or by a natural process). Products are tangible. (hotdog, shirt, etc.)

A business can sell a service (work done for others as an occupation or a business). Services are not tangible. (haircut, tooth filled)

Money a company receives from selling a product, or service is called revenue.

How do businesses make and spend money?

A cost associated with opening a business is called an expense.

Profit is the money gained after expenses have been paid or the excess of the selling price of goods over their cost.

The money paid to someone for the work they do is called a salary.

Money paid to use or occupy a space is called rent. To profit, a business must sell a product or service for more

than it costs to produce. If NOT, the result can be a loss. A loss occurs when expense exceed revenue.

The Profit Equation (S4)

Revenue – Expenses = Profit (or Loss)

(High) (Low) (High)

Complete the Profit Equation Worksheet in your Student Packet.

Answer the questions thinking about a convenience store.

The Entrepreneurial Cycle (TR3)

Four major components of running a company– Design– Manufacturing– Marketing– Sales

In each of the four parts, companies must record their revenue and expenses to make sure they are on track to make a profit.

Real world companies go through the cycle numerous times.

Characteristics of a Good Company

How do companies give back to the community?

Characteristics of a Good Company

Good companies:– Make quality products or provide quality services.– Provide a healthy work environment– Treat their employees well– Benefit their community– Demonstrate good business ethics

Ethics are the rules or standards governing the conduct of a person or the members of a profession.

Right Person for the Job

A job application is a written request for employment.

Review the Classified Ads in the Student Packet (S5)

Complete The Right Person for the Right Job in the Student Packet (S6)