Transcript File

Types of
Business
Review Assessment
•Review Answers as a class.
Discuss Test taking strategies.
Close reading with Complex Text
Do Not Write, Just Read.
What is the purpose?
Close reading with Complex Text
Now Read for the overall gist with a partner.
Close reading with Complex Text
Chunk the text.
Re-READ and mark vocabulary.
Summarize each chunk.
Re-Read & Note important Information.
Foldable with 5 panels
Merger: When two
or more companies
join together under
one name
•
Mergers
Horizontal Merger- when 2 or more companies
making the same thing join together.
•
EX: XM Radio & Sirius Radio
●
Vertical Merger- when 2 or more companies
involved in different stages of making the same
thing join together.
•
EX: Oils companies buy oil fields, tankers, and
gas stations
•Unlimited liability: Risk extends beyond
your share in a company.
(you could lose EVERYTHING!)
•
•Limited Liability: Risk only involves
your share of the company.
Liability = Risk
Sole Proprietorship
•Description
▫1 person owns and operates the company
•Advantages
▫The owner makes ALL decisions and reaps
ALL the benefits
•Disadvantages
▫Unlimited Liability
•Examples- Girl’s lemonade stand,
Shima’s beauty salon
Partnership
•Description
▫2 or more people own and operate the
company
•Advantages
▫Divide tasks among partners
▫Access different skills of partners
•Disadvantages
▫Share Profits
▫Unlimited liability
•Example- Doctors and Law offices
Corporation
•Description
▫A company divided into shares who are
owned by stockholders
•Advantages
▫Limited Liability
•Disadvantages
▫Double taxes
▫Gov’t regulations
•Examples- Disney, IBM, Microsoft,
Nike, Apple
Franchise
•Description
▫A company that is individually owned but
belongs to a a parent corporation (soleproprietorship & Corporation)
•Advantages
▫Built-in reputation
▫Limited Liability
•Disadvantages
▫Loss of freedom & decision making
•Examples-the Panthers, McDonald’s, Five
Guys Burgers
Reflection
•Pick a business:
In a paragraph or two describe how you
think it operates. Who owns it? What type of
stuff does it sell? Does it seem like it does
good business? Etc.
What type of business is it?
Business Cycle
& Circular Flow
Vocab
Economic indicators - Statistics used to
measure the economy
Inflation - a general increase in prices – your
$ buys less.
National Debt - all the money the
government owes
Economic Indicators
CPI- consumer price index - measures inflation/deflation
rates (price levels)
Unemployment rate- percentage of people without a job
Gross Domestic Product - GDP- The value of everything
produced within a country in one year.
Per Capita GDP- how much every person on average
produced
-GDP/population=per capita GDP
The Stock Market
Stock Market: The exchange of all
companies’ stocks.
The Stock Market
Bull Market – The average value of stocks is
going up.
Bear Market - The average value of stocks
is going down
The Business Cycle
The Business Cycle
Peak (Boom)
•Economy: Good
•Inflation: High
•Unemployment: Low (people have jobs)
Contraction (Recession)
•Economy: Declining
–(e.g. 6 months of decreasing GDP)
•Inflation: Falling
•Unemployment: Rising (people losing jobs)
Trough (Depression)
•Economy: Bad, GDP is low
•Inflation: Low (deflation)
•Unemployment: High (a lot of people don’t have jobs)
Expansion (Growth)
•Economy: Improving
•Inflation: Rising
•Unemployment: Falling (people getting jobs)
•Goal: CONTROLLED expansion…not too fast, not too
slow
Circular Flow
Business Cycle Scenarios
• Answer the questions for each scenario
by referring back to your notes and the
business cycle.
Reflection
Why is measuring the Economy important?
Should we care how many jobs there are or
how high prices are? Why?
What tools are available to measure the
Economy? Think of the graphs economists
use. How effective are they? What can we
measure when we use them?
Economic Thinkers
Vocab
Capitalism: form of economy where production is
—
controlled by private citizens
—
Invisible hand: Adam Smith’s term for the force
—
that controls the economy
Patent: a temporary government protection on an
—
invention (design).
—
Copyright: a permanent government protection on
—
an idea.
Why is protecting ideas important?
Not in the Packet but write these down
Animal Spirits - The bull and the bear, aka
people don’t always act as rational
investors.
Stimulus Spending - Government spending
designed to create aggregate demand.
Liquidity - How “fluidly” money can move
around the economy. How easy is it to
borrow money?
Benefits of Competition
Competition creates…
-cheaper prices
—
-better quality
—
-greater variety
—
Adam Smith
Capitalist/Free Market Economy
—
Economic Goal:
ECONOMIC FREEDOM
—
Economic Theory:
“Laissez-Faire”-”hands off” –
—
Gov’t should stay out.
The “Invisible hand” will set
—
the prices and quantity
Competition & profit = good!
—
—
Father of ECONOMICS
Book: The Wealth of Nations
Karl Marx
Command Economy is best.
Economic Goal:
ECONOMIC EQUALITY
—
Economic Theory:
Decisions made by central
—
planner (gov’t)
Equal distribution of wealth
—
—
Book: Communist Manifesto
—
Father of Communism
John Keynes
Mixed Economy is best (like
USA)
Economic Goal:
ECONOMIC GROWTH &
—
STABILITY
Gov’t should stay out of the
economy (market) unless
there is a problem.
Problems? Gov’t should step
in to fix it (command).
Father of Keynesian Theory
—
F.A. Hayek
-Government Intervention
limits economic growth.
-The free market should
guide the economy.
Businesses run on a cycle
that should not be
interrupted.
-Created the Austrian
School of Economic
Thought.
Capitalism and the Free Market
Traditional Economy
•What to produce?
–What your ancestors produced.
•How to produce?
–The way it’s always been done.
•For whom?
–Your family and village.
•Not much tech. Focus on basic needs
•Needs are met by hunting, gathering and
farming.
Command/ Planned Economy:
•Decisions are made by central planners
who make them according to what they
believe to be in the best interest of the
whole.
•There is no competition, business is not
run for profit.
Market Economy
•Decisions are made by individual buyers and
sellers who act in their own self interest.
•Means of production is privately owned,
supply and demand are the main factors in
making decisions.
•There is competition for business and profit is
the main motive.
Mixed Economies
Combines some aspects of multiple types of
economies.
-ex. US has free enterprise and government
regulation at the same time
Who Holds the Wealth
Three Column Notes
Divide your paper into thirds
—
Each third represents a type of economy: Market,
—
Command, or Mixed
On each third you must:
—
¡Write
5 descriptive/key words related to that type of economy
¡Put
the name of the economist associated with that type of economy,
and the goal of that economy
¡Draw
one picture illustrating how that economy works, or something
related to it.
¡Use
markers, colored pencils or crayons. This should be colorful and
visually appealing.
Economic Rap Battle Essay
• Read the rap battle
• Write an essay answering the
questions on your sheet
• Essay should be 3-4
paragraphs. Support your
answer with quotes from the
song.
Fiscal Policy
Warm-Up
Complete the guided
reading by reading the
pages listed in your blue
Civics Today book.
Tax Systems
Progressive – Rich pay higher % of money
than poor (our income tax)
Regressive – Poor pay higher % of their
income than rich (sales tax)
Proportional – Everyone pays equal %
Excise Tax – Tax on a particular type of item
(cigarettes, alcohol, gas)
Fiscal Policy = actions Congress can take
(spending, taxes, gov’t programs)
nMonetary Policy = controlled by the Federal
Reserve (amount of $$, interest rates)
n
nFederal
for U.S.
Reserve (“The Fed”) = central bank
Independent Practice
1. Determine if the situations would require
loose fiscal policy or tight fiscal policy from
Congress
• Remember with inflation (prices are too
high) Congress wants a tight fiscal policy.
• Remember with unemployment (not
enough jobs available) Congress wants a
loose fiscal policy.
2. Answer questions 6-11 by checking your
notes.
Reflection
• 3 things that you
learned today
• 2 things you want to
know more about
• 1 thing you did not
understand
Monetary Policy
Warm-Up
• Pick up handout from the front table.
• Read the questions.
• Read the article carefully and
underline key words.
• Answer the questions in complete
sentences.
Monetary Policy
Vocab
Interest Rate - The cost of borrowing money.
Reserve Ratio - The amount of money in total deposits a bank
must have on hand and may not lend out.
Bonds - Basically an IOU. Money is invested in the
government with a fixed rate of interest paid out to you after
the loan is matured.
Economic Problem
Inflation
Prices are too high because people have to much money.
(More money becomes worth less)
The goal of the Federal Reserve is to decrease the money in
the hands of consumers.
They want contractionary or tight fiscal policy.
____________ Interest Rates (More expensive to borrow money)
____________ Reserve Ratio (Banks have less to lend)
____________ Bonds (If people invest their income in bond they have less to
spend)
Unemployment
People are losing their jobs because there are not enough
people spending money.
The goal of the Federal Reserve is to increase the money in
the hands of consumers.
They want expansionary or loose fiscal policy.
____________ Interest Rates (Less expensive to borrow money)
____________ Reserve Ratio (Banks have more to lend)
____________ Bonds (If the government pays out bonds people have more
cash to spend)
Monetary Policy Practice
• First, Determine if the situations would require
loose monetary policy or tight monetary policy
from the Federal Reserve.
• Check your notes to see what the Federal Reserve
would do in each situation.
• Then check your notes to see what the Federal
Reserve would do in questions 6-9. Answer in
complete sentences.
Fiscal & Monetary Policy Quiz
• Read each question carefully
• Use your notes on the Business
Cycle, Fiscal Policy, and Monetary
Policy to answer each question
fully
• Try your best, this is a quiz grade
• Work quietly, stay on task, and
raise your hand if you have a
Reflection
3 things you learned
2 things you want to
know more about
1 thing you did not
understand
Productivity
Agenda
-Warm-up
-Productivity Notes
-Productivity Practice
-Reflection
Warm Up
• Pick up handout from front table
• Read questions 1-4
• Use pages 722 & 724 to answer the
questions in complete sentences
• Pay attention to headings and key
words.
• Read the pages carefully.
Anticipatory Set-write on
separate sheet of paper
You are a tomato farmer. You plant seeds by hand, and then walk around
with a watering can to water the seeds until they grow. When they grow,
you get a couple of your friends and you all go pick them by hand. You
make them into tomato sauce to sell. Your friends each take some
tomatoes home and make sauce in their kitchens. Then they bring it all to
you to pack into jars. You’re not making a lot of money this way, and
other tomato growers seem to be producing a lot more tomato sauce in a
lot less time.
1.How could you make your job easier?
2.How could you grow more tomatoes?
3.How could you make more sauce in less time?
4.Is there anything else you could do to improve how much you
are producing?
Traditional Economy
•What to produce?
–What your ancestors produced.
•How to produce?
–The way it’s always been done.
•For whom?
–Your family and village.
•Not much tech. Focus on basic needs
•Needs are met by hunting, gathering and farming.
Command/ Planned Economy:
•Decisions are made by central planners who make them according to
what they believe to be in the best interest of the whole.
•There is no competition, business is not run for profit.
Market Economy
•Decisions are made by individual buyers and sellers
who act in their own self interest.
•Means of production is privately owned, supply and
demand are the main factors in making decisions.
•There is competition for business and profit is the
main motive.
Mixed Economies
Combines some aspects of multiple types of economies.
-ex. US has free enterprise and government regulation at the same time
Output: something made/produced
Input: something that is used to make/produce an
output
Input v. Output Practice
Productivity
-How
well resources are being used to produce a
good or service.
Division of Labor
-Breaking up
the steps of production among
many workers
Specialization
-Each worker learns a specific job and becomes an expert in that
task.
-More efficiency = More profit.
Assembly Line
-Increases productivity by
having workers stand
still and have output come to them to work on.
-Where
is it Used?
Subway, Car Factories
Automation
-Increases productivity by
using machines
instead of humans (machines don’t get tired or
take breaks)
-Where
is this used?
Car factories, ATMs
Technology
-Increases productivity by
improving the tools
used to produce goods (robots, computers)
-Where
is it Used?
McDonald’s touch screens, Car factories, power
points in class!
Human Capital
-Increases productivity by
making the worker
smarter.
-Where
is it Used?
Professional Development for teachers
Law of Diminishing Returns
-Productivity will
to decrease.
increase to a point, then begin
Comparative Advantage
-When
a country produces a good that is easy to
make instead of a good that is hard to make.
Specialization Practice
Suppose Tom can produce either 5 units of good X or 15 units of good Y in one day
while Harry can produce either 2 units of X or 10 units of Y in one day.
a. If no specialization is possible, what is the opportunity cost to Tom of one unit of
good X? Of one unit of good Y?
b. If specialization is possible, in which good should Tom specialize? In which
should Harry specialize? Explain.
Reflection
• 3 things you learned today
• 2 things you want to know
more about
• 1 thing you did not
understand
Globalization and International Trade
Civics and Economics
Warm Up
Pick up handouts from front table.
Look at the map and charts on page 709.
1. China is yellow. What % of its exports go to the U.S.?
2. What % of Mexico’s exports go to the U.S.?
3. According to the bar graphs, which country imports the
most goods?
4. What do you think could be an advantage of having lots
of imports?
5. What could be a disadvantage of having lots of imports?
International Trade
 Protectionism - a policy designed to protect domestic
economy (buy American!)
 Tariff - tax on foreign imports (so people support U.S.
businesses)
 Embargo - prohibition against trade with a country (we
refuse to trade with Cuba)
 Why? Punishment, isolation, etc.
International Trade
 Absolute Advantage – the ability to produce more of a
good or service than someone else given the same resources.
 Comparative Advantage – the ability to produce certain
good more efficiently than another (at a lower opportunity
cost)
Vocabulary
 Globalization- people and countries working together despite
barriers.
 Unfavorable balance of trade- When a nation imports more
than it exports.
Balance of Trade
 Trade Deficit - aka unfavorable balance of trade
 Country imports more than it exports
 Trade Surplus – aka favorable balance of trade
 Country exports more than it imports
International Trade
 Comparative Advantage…continued:
 Doesn’t mean you can make MORE overall, just that you give
up LESS.
 U.S. produces corn. Saudi Arabia produces oil.
 We sell them corn, they sell us oil, everyone uses their
resources as efficiently as possible.
Comparative Advantage Activity
 Work in partners on Bert and Betsy’s problem.
 Answer
questions 1 - 6 (10 minutes)
 Discuss answers
 Work through Option 1 as a class.
 Work through the others with your partner (15 min)
International Trade
 NAFTA = North American Free Trade Agreement
 Removed trade restrictions between U.S., Mexico and Canada.
Globalization
 Interdependence - countries rely on each other for what
they can’t/don’t produce themselves.
Example - The iPod is an American invention…but where does
it come from?
Global Organizations
EU - European Union
 Ended trade barriers between most European nations.
 Created the Euro - one currency for the whole EU
IMF - International Monetary Fund
 Helps build the economy of poor/ developing nations.
Movements of people…




Migration - when groups of people move from one
place to another.
Silicon Valley - area in California with a lot of
tech/computer jobs
Research Triangle - area of NC with a lot of
medical/science jobs
Look at the map on the next slide. Where are
manufacturing jobs moving?






Green=greater than 60% growth in manufacturing jobs
Light green=54.4% growth to 7.5% decrease
Yellow=8.7% to 29.1% decrease
Pink=31.2% to 43.2% decrease
Red=43.6% to 56.2% decrease
Maroon=58% to 88.6% decrease

Rust Belt - area in northeast and midwest (PA, OH) that
used to have lots of manufacturing jobs


“rust belt” because they made steel
U.S. has lost manufacturing jobs to outsourcing

Sun Belt - area across the south of the U.S.


Increase in population in last 50 years
Retirement, immigration
Savings and
Savings Vehicles
Warm-Up
What does “Pay Yourself Mean?”
Why do people save?
Answer on your handout.
Why do people save?
Some debt is ok, too much debt is dangerous.
Saving money allows us to purchase the things
we want without having to resort to borrowing.
Savings provides a safety net, something to fall
back on if money becomes tight.
How saving earns
• Interest - In terms of saving, the money paid
to you by the bank for lending out your
money.
• Simple Interest = (PxR)T
Ex. Principal ($100) x Rate (8%) x Time (3
Years) = $24
Banks pay compound interest. Each month
your interest compounds upon itself.
Compound Interest = (Px(R+1))T
(P($100) x (5%+1)) x T(12 Months) = $179.59
•
•
The Rule of 72
• The Rule of 72 represents a simple way to determine
how long it will take to double your savings.
• 72 is divided by the rate of interest = the number of years
it will take for a saved amount to double.
Ex. 72/Rate(8%) = Money will double in 9 years
Savings Vehicles
Simple Savings Accounts - An easy and safe
place to save money.
- Pays out at a very low rate of return due
to its high level of investment safety.
- Deposits are guaranteed up to $250,000
by the FDIC.
Savings Vehicles Cont.
Bonds - A loan made by the public to the government
to complete public works projects.
- Unlike stock, which can lose value, bonds gain
value at a flat rate, determined at the time the bond is
issued.
- Bonds are purchased at half of their face value
and eventually “mature” to their full value.
- Bonds are a “safe” investment, because the
purchaser cannot lose money.
Goal Setting and Saving with
Purpose
1. Set a short term goal.
2. You make $2000 per month. You MUST spend $1600 on
fixed expenses. The more you choose the save the less
you can spend on other things. (Be Realistic!)
3. You must make monthly deposits. Interest on your
savings is 12% annually. (Compound Interest)
4. Show all of your math!
5. Set a long term goal on a separate sheet of paper with
your partner.
.
Reflection
Why is saving money important? How does it
protect you?