Principles of Business and Finance

Principles of Business and Finance

8721

Essential Standard#
Objective # / Unit Titles/Essential Standards and Objective Statement / Local Use / Course
Weight
Unit A / Principles of Business
Essential Standard 1.00 / Understand the role of business in the global economy. / 16%
PBF1.01 / Understand economic systems. / 5%
PBF1.02 / Understand economic conditions. / 5%
PBF1.03 / Understand business in the global marketplace. / 6%

Essential Standard 1.00 will help students understand economic systems, economic conditions, and business in the global marketplace. In objective 1.01 students will determine how businesses satisfy needs and wants, and learn the six steps of the economic decision-making process, about the relationship between how economic questions are answered and the type of economic system that may exist in a country, and the self-regulating principles of a market economy. In objective 1.02 students will learn about the economic activities that are measured to determine the conditions of any economy, and how the movement of an economy is classified. In objective 1.03 students will determine which factors and regulations businesses must consider when doing operating in the global marketplace, determine the appropriate entry mode for businesses to enter the global marketplace, and identify the role of international business organizations.

Course / 8721 Principles of Business and Finance / Unit A / Principles of Business
Essential Standard / 1.00 / B2 / 16% / Understand the role of business in the global economy.
Objective / 1.01 / B2 / 5% / Understand economic systems.
Essential
Questions / ·  How do businesses satisfy needs and wants?
·  What are the six steps necessary for making choices?
·  What is the relationship between who answers economic questions and the type of economic system that exists in a country?
·  What are the self-regulating principles of a market economy?

UNPACKED CONTENT

I.  Economics is the study of the decisions made for production, distribution, and consumption of goods and services to satisfy needs and wants. To satisfy needs and wants businesses use economic resources to produce, distribute, and sell goods and services. The types of economic resources are:

A.  Capital

B.  Human

C.  Natural

II.  The six steps of economic decision-making process are:

A.  Defining the problem

B.  Identifying choices

C.  Evaluating the advantages and disadvantages of each choice

D.  Choosing one choice

E.  Acting on the choice

F.  Reviewing the decision

III.  The involvement of a nation’s government in answering economic questions determines its economic system. The economic questions address the allocation of scarce resources.

A.  The three economic questions are:

1.  What to produce?

2.  How to produce?

3.  For whom to produce?

B.  The main types of economic systems and who decides on the economic questions are:

1.  Command (Communist) Economy’s government decides.

2.  Market Economy’s people determine.

3.  Traditional Economy questions are carried out the same way.

4.  Mixed Economy takes on fundamentals of command and market economies.

C.  The four principles that The United States economic system is based on are: which are:

1.  Competition

2.  Freedom of Choice

3.  Private Property

4.  Profit

IV.  Individuals, businesses, and government make buying decisions in a market economy. These buying decisions make a market economy self-regulating. The self-regulating principles of a market economy are:

A.  Consumers set demand.

B.  Producers establish supply.

C.  Supply and demand generate competition.

D.  Demand and supply factors influence market (equilibrium) prices.

8721 Principles of Business and Finance Summer 2010, Version 2 Page 13

INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
Going Green
Please refer to the Going Green document in the introductory materials for suggestions on how to conserve resources while teaching this course. For example, graphic organizers are used to guide students in taking notes. Alternative methods are suggested in the Going Green document to provide this material to students.
Course PLC
Please refer to the Course PLC document in the introductory materials for directions to join the Moodle Professional Learning Community (PLC) for this course.
1 / Business and Finance Introduction
·  Assign students to groups of two.
·  Facilitate each group watching a business or finance video from the link in the resources column. NOTE: This can also be done as a class. Check videos prior to class.
·  Facilitate students reflecting on the video viewed by writing at least a paragraph about how what they viewed relates to what they expect to learn in the course. NOTE: Format of reflection may vary.
·  Facilitate several groups sharing reflections with class and how videos relate to the content of the course. / Helps students to begin to UNDERSTAND (B2) the principles of business and finance / Website:
http://stosselintheclassroom.org/index.php?p=search.php
2 / Satisfying Needs and Wants Introduction
·  Have students read Focus on Real Life on pages 6 and 12 in Intro to Business, 6e, Thomson South-Western textbook OR use current events related to needs, wants, and making choices.
·  Facilitate a discussion using the questions:
1.  What are needs and wants?
2.  What are goods and services?
3.  What resources are needed to meet needs and wants?
4.  How are decisions made to satisfy needs and wants? / Helps students to begin to UNDERSTAND (B2) how needs and wants are satisfied / Textbook
Instructional Activities continued on the next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
3 / Satisfying Needs and Wants Reading and PowerPoint Presentation
·  Present an overview of the concepts:
o  needs and wants are different
o  businesses can provide goods and services to satisfy needs and wants
o  businesses use economic resources to produce, distribute, and sell goods and services
o  the basic economic problem of scarcity
·  Facilitate students completing Satisfying Needs and Wants Organizer. Students may obtain information by reading pages 6-15 in Intro to Business, 6e, Thomson South-Western textbook OR by participating during presentation of PowerPoint Presentation 1.01, slides 1-16.
·  Review how goods and services, economic resources, basic economic problem and economic choices contribute to satisfying needs and wants. / Helps students UNDERSTAND (B2) how needs and wants are satisfied / Satisfying Needs and Wants Organizer
Textbook
PowerPoint Presentation 1.01, slides 1-16
4 / Economic Resources
·  Assign students to groups of two.
·  Facilitate students completing Economic Resources Activity.
·  Facilitate a discussion about responses. NOTE: emphasize how economic resources are used to satisfy needs and wants. Discuss uses of resources, examples:
1.  NC farmers meet the needs of families.
2.  NC film industry meets the wants of movie producers. / Helps students to CLASSIFY (B2) how economic resources are used to satisfy needs and wants / Economic Resources Activity
Instructional Activities continued on the next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
5 / Economic Systems Introduction
·  Have students read Focus on Real Life on page 17 in Intro to Business, 6e, Thomson South-Western textbook OR use current events related to economic decisions and systems.
·  Facilitate a discussion using the questions:
1.  Who makes economic decisions for the United States economy?
2.  How are economic decisions made in other countries? / Helps students to UNDERSTAND (B2) who makes economic decisions in economic systems / Textbook
6 / Economic Systems Reading and Power Point Presentation
·  Present the concept that how a nation answers the three questions that determines its economic system:
1.  What to produce?
2.  How to produce?
3.  For whom to produce?
·  Facilitate students completing Economic Systems Organizer. Students may obtain information by reading pages 17-22 in Intro to Business, 6e, Thomson South-Western textbook OR by participating during presentation of PowerPoint Presentation 1.01, slides 17-20. / Helps students UNDERSTAND (B2) the main economic systems / Economic Systems Organizer
Textbook
PowerPoint Presentation 1.01, slides 17-20
7 / Comparing Economic Systems
·  NOTE: Read pages of Economic Systems Activity to ensure all materials are available for this activity.
·  Assign students to groups of four to five.
·  Facilitate students completing Economic Systems Activity.
·  Facilitate students completing Economic Systems Debrief: Comparing the Villes that describes each main type of economic system. NOTE: This can be completed as an exit ticket, as a class.
·  NOTE: This is a formative assessment. / Helps students COMPARE (B2) the main types of economic systems / Economic Systems Activity
Materials to complete Economic Systems Activity (see activity)
Instructional Activities continued on the next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
8 / Market Economy Introduction
·  Have students read Focus on Real Life on page 23 in Intro to Business, 6e, Thomson South-Western textbook OR use current events related to supply, demand, and determining how much to pay for items.
·  Facilitate a discussion using the questions:
1.  How do you determine if a business can satisfy your needs and/or wants?
2.  How do you determine how much of a good or service is enough?
3.  How do you determine how much you will pay for goods or services? / Helps students begin to UNDERSTAND (B2) supply and demand / Textbook
9 / Market Economy Reading and PowerPoint Presentation
·  Present how satisfaction and profit are necessary in a market economy.
·  Present the relationship of supply and demand.
·  Present how demand for goods or services influence prices.
·  Facilitate students completing Market Economy Organizer. Review supply and demand and the relationship of both in determining prices. Students may obtain information by reading pages 23-26 in Intro to Business, 6e, Thomson South- Western textbook OR by participating during presentation of PowerPoint Presentation 1.01, slides 21-29. / Helps students UNDERSTAND (B2) supply and demand and the relationship of both in determining prices / Supply and Demand Organizer
Textbook
PowerPoint Presentation 1.01, slides 21-29
Instructional Activities continued on the next page.

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INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
10 / Interpreting Market Prices
·  Facilitate students completing the What is the Market Price? Activity.
·  Facilitate a discussion about how the relationship between the demand and supply of products determines market price. / Helps students INTERPRET (B2) market prices / What is the Market Price? Activity
What is the Market Price? Activity Key
11 / Key Terms
Facilitate students completing Economic Choices and Systems Key Terms Crossword Puzzle. / Helps students IDENTIFY (B2) key terms associated with economic choices and systems / Economic Choices and Systems Key Terms Crossword Puzzle
Economic Choices and Systems Key Terms Crossword Puzzle Key
12 / Supplement
Corporate Economics
·  Facilitate a discussion about what kinds of information students provide to other people in order for decisions to be made.
·  Ask students if their career plans include working in an industry that will allow them to provide information that other people will use to make decisions.
·  Introduce the industry of Corporate Economics.
·  Have students read Planning a Career in … Corporate Economics page 5 in Intro to Business, 6e, Thomson South-Western textbook.
·  Facilitate a discussion of why people providing services in the corporate economics industry should pay attention to details.
·  Invite guest speakers representing the corporate economics field. / Helps students UNDERSTAND (B2) career options related to economics / Textbook
Numeracy Strategy: To make a Math Academic Connection is to see a relationship between a math concept and a real-life situation. Finding math-to-life connections greatly increase the relevance of new information and skills being learned.

Instructional Support Material

Textbook / Website
Intro to Business, 6e, Thomson South-Western / http://stosselintheclassroom.org/index.php?p=search.php
Handouts (included) / Other
·  Satisfying Needs and Wants Organizer
·  Economic Resources Activity
·  Economic Systems Organizer
·  Economic Systems Activity
·  Materials to complete Economic Systems Activity (see activity)
·  Economic Systems Debrief: Comparing the Villes
·  Supply and Demand Organizer
·  What is the Market Price? Activity
·  What is the Market Price? Activity Key
·  Economic Choices and Systems Key Terms Crossword Puzzle
·  Economic Choices and Systems Key Terms Crossword Puzzle Key / ·  PowerPoint Presentation 1.01 (separate file)
·  Assessment Prototypes (included)

Name: ______Class: ______Date: ______

Satisfying Needs and Wants Organizer

Directions: Describe in your own words the listed items.

Needs / Wants
Goods / Services
Natural
Examples
Human
Examples
Capital
Examples

The Basic Economic Problem

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Satisfying Needs and Wants Organizer Continued

Economic Decision-Making Process

What is the purpose of the decision-making process?

______

What happens to choices in a tradeoff?

______

What is opportunity cost?

______

In column one, provide the six steps of the economic decision-making process. In column two, apply the steps and complete an economic decision such as purchasing new equipment, shopping for a gift, or paying for a trip.

8721 Principles of Business and Finance Summer 2010, Version 2 Page 13

Name: ______Class: ______Date: ______

Economic Resources Activity

Directions: Use the listed or other resources to classify how economic resources are used to satisfy needs and wants.

Some North Carolina Resources:

Bank of America Stadium

Christmas Trees

NC Legislators

Sweet potatoes

Brier Creek Apartments

Therapists

Table of Resources and Uses

NC resource / Type of resource / Does this resource satisfy needs or wants / How will this resource satisfy needs or wants for a business?
Honey / Natural / Answers will vary.
Wants / Answers will vary.
A business could sale 12 oz jars of honey at a roadside stand.

8721 Principles of Business and Finance Summer 2010, Version 2 Page 13

Name: ______Class: ______Date: ______

Economic Systems Organizer

Directions: Provide responses for the listed items.

What are the three economic questions that economic systems must answer?

1.  ______

2.  ______

3.  ______

Main Economic Systems

Features / Command Economy / Market Economy / Traditional Economy
Who owns the resources?
Who answers the three economic questions?

8721 Principles of Business and Finance Summer 2010, Version 2 Page 13