Business Basics 8th grade

Business Basics

Open Ended

In your business group, brainstorm 3 POSITIVE things about owning your own business and write them in the box below.

Open Ended

In your business group, brainstorm 3 NEGATIVE things about owning your own business and write them in the box below.

Can be owned by one person, multiple people or a corporation. Sells a product or a service

Business

​Something produced by humans or machines or natural process. You can actually touch it.

​​Product

Work done for others by others. Getting our getting our oil changed, planning our vacation, painting our house.

​​Service

​Amount of money you earn from a job, investments etc.

Income

Match

Match the Business Terms with their meaning.

• Organization that sells a Product or a Service

• Something produced by humans or machines or natural process

• Work done for others by Others

• Amount of money you earn

Business

Product

Service

Income

• Business

• Product

• Service

• Income

Categorize

Options (8)

Nike Shoes

Rice Krispie

Gasoline

Insurance

Lawn Mowing

Cutting Hair

Babysitting

iPhone

Decide if something is a Product or Service that a business might decide to sell.

Product

Service

Being paid the same amount of money for the work you do either per day, month or year.

Salary

​The amount of money you owe in bills and debit is more than the amount of money you have.

Loss

​Being paid per hour for the labor that you do; either physical labor or mental labor.

​​Wage

Money you get to keep after all of your expenses have been paid

Profit

Match

Match the financial terms with their meaning.

• Expenses exceed the revenues

• Money gained after expenses have been paid

• Fixed amount of money earned per day, month, or year in exchange for labor

• Money earned per hour in exchange for labor

Loss

Profit

Salary

Wage

• Loss

• Profit

• Salary

• Wage

​A plan for how you will save and spend your income

​​Budget

 a person who organizes and manages a business, assuming the risk for the sake of profit

​​Entrepreneur

The activities involved in promoting a company, product or service.

Profit Equation

The activity of attracting public attention to a product or business

​​Advertising

Marketing

Revenue-Expenses = Profit or Loss

Match

Match the term with its meaning.

• The activities involved in promoting a company, product or service.

•  a person who organizes and manages a business, assuming the risk for the sake of profit

• The activity of attracting public attention to a product or business

• Revenue – Expenses = Profit or Loss

• Spending Plan

Marketing

Entrepreneur

Advertising

Profit Equation

Budget

• Marketing

• Entrepreneur

• Advertising

• Profit Equation

• Budget

Fee Paid for borrowing money

Interest

​The costs that come with running a business: employees, insurance, rent, equipment etc.

Expense

Money borrowed that you promise to pay back. Can be loan or credit cards.

Credit

Money you receive from selling a product or service

​​Revenue

Match

Match the financial terms with their meaning.

• Cost associated with operating a business.

• Money received from selling a product or service

• Money borrowed that you promise to pay back. Can be loan or credit cards.

• Fee Paid for borrowing money

Expense

Revenue

Credit

Interest

• Expense

• Revenue

• Credit

• Interest

Draw

Banks are a business, every time you borrow money they charge Interest so bring money into the business, this can get expensive for the customer. Circle the following items on the picture for buying a home in Northern Star Valley (Alpine - Etna).

For Reference this classroom is 2200 sq. ft.

With RED circle how much the average home costs in the Alpine and Etna areas.

With BLUE circle how much you will actually pay for your house after 30 years.

With GREEN circle how much money is going to interest/bank.

Draw

Circle the following items on the picture for buying a home in Central Star Valley (SV Ranch, Thayne and Bedford).

For Reference this classroom is 2200 sq. ft.

With RED circle how much the average home costs in that area of Star Valley.

With BLUE circle how much you will actually pay for your house after 30 years.

With GREEN circle how much money is going to interest/bank.

Draw

Circle the following items on the picture for buying a home in Southern Star Valley (Afton to Smoot).

For Reference this classroom is 2200 sq. ft.

With RED circle how much the average home costs in that area of Star Valley.

With BLUE circle how much you will actually pay for your house after 30 years.

With GREEN circle how much money is going to interest/bank.

Multiple Choice

When borrowing money, is Interest your "Friend"?

• Yes

• No

Rice Krispie Business Info

• Everyday each group will pay the following expenses:

  • Rent: $1 per day per group

  • Salaries: $1 per day per group member, whether they are here or not

Fill in the Blank

How Much Money Does Your Group Get To Pay Every Day In Rent to Mrs. Hale?

$

Multiple Choice

If you have 4 people in your group, how much money will you pay every single day to Mrs. Hale in Employee Wages?

• $3

• $4

• $1

• $5

Multiple Choice

Do you have to pay employee wages for group members that are absent?

• Yes

• No

LOANS

• Because Mrs. Hale is full of kindness if your group runs out of money, she will let you take out as many loans as your group needs.

• You can take out loans in any amount from $1-$20.

• But REMEMBER loans are not free, each loan is its own interest payment.

• 1 loan = $1 interest per SCHOOL day. 2 loans = $2 in interest etc.

• Loans can not be paid back until the last day of the unit.

Fill in the Blank

Loans are not free. How much does Mrs. Hale charge per day in interest per loan?

$

Multiple Choice

Many banks charge fees if you pay off loans early to make up for the money they were planning on making from interest. When will Mrs. Hale let you pay off your loans?

• On the Sell Day

• Anytime

• Last Day of the Unit

• She won't make you pay them back

BANKRUPTCY

In 2023 - 418,724 Americans filed bankruptcy.

Bankruptcy is a legal process for when a person or business simply cannot pay back the money they owe (their debts). They ask a court for help in figuring out a solution to get a fresh start financially. 

Bankruptcy can stay on your credit for up to 10 years. Some of the negative impacts of bankruptcy are:
- Credit score damage
- Insurance costs increase
- Difficulty in finding a job or renting a property
- Loss of property

If your group files bankruptcy, your group will receive a 50/100 on the project - meaning your group does not make enough money from the sell of your product to cover all of your expenses.

Fill in the Blank

If your group does not make enough money to pay for all the costs associated with your business you will file bankruptcy. What score out of 100 will Mrs. Hale give you for the project?

Group Responsibilities

There are 5 jobs required for each group.

If your group does not have 5 people, someone will need to have more than one responsibility.

Business Leader

• The Boss. The person who needs to keep everyone else on task and stop bad behaviors that are happening.

• They have the final say on all decisions.

• This person will report to Mrs. Hale

• Keeps track of the Money. If this person is going to be absent, they need to let others know where the money is.

  • If money is lost or in someones locker, you will need to take out a loan. Lost money will not be replaced.

Marketing Leader

• This person is the creative mind behind the Business Poster that will hang in your business on the sale day.

  • A poster from the cafeteria.

  • Must include: business name, product, logo and use color

• This person is the director and creative mind behind the 20-30 second commercial. This will be shown to all of your customers on the sale day.

  • 20-30 seconds. Filmed on a cell phone in the hall outside the classroom. You can edit it at home and then airdrop to Mrs. Hale. iPhones work best.

Finance Leader

• This person will be responsible for making sure that you don't spend too much.

• Keep track of the groups budget by recording all spending and income in the financial tracker.

• Will keep track of the groups packet of papers.

• If they are absent someone else in the group will need to fill in for the day, make sure everyone knows where the papers will be kept.

• The physical money that we have should always match up with what our ledger says we should have. This person needs to be someone who is committed to being here everyday, since they will have the money. 

Design and Cooking Leader

• This person designs how the food product will be packaged and served.

• They want the food to be packaged nicely but at a reasonable cost.

• This person will be head chef on the cooking days.

Sales Leader

• This person will be the one responsible for how to get people to your business on the sale day.

• Should be someone who can easily get peoples attention and can be persuasive in getting them to spend their money at your busniness.

Open Ended

Who in your group is going to be the Business Leader?

Open Ended

Who in your group is going to be the Marketing Leader?

Open Ended

Who in your group is going to be the Finance Leader?

Open Ended

Who in your group is going to be the Design and Cooking Leader?

Open Ended

Who in your group is going to be the Sales Leader?

Open Ended

With your group, google "Rice Krispie Recipes" and come up with FOUR different ideas that your group would like to make IF those ingredients are available. This most likely will not be the recipe that you will make, it is just a brainstorming session.

Open Ended

With your group discuss and then write down TWO things your group is going to do to make your product stand out from the other groups.

Open Ended

With your group brainstorm ideas on what you will do and say for a 20-30 second commercial to promote your product.