Chapter 8 - Owning a Small Business
Prescribed Learning Outcomes:
C2 Solve problems that involve the acquisition of a vehicle by: buying, leasing, leasing to buy.
C3 Critique the viability of small business options by considering: expenses, sales, profit or loss.
C2 Solve problems that involve the acquisition of a vehicle by: buying, leasing, leasing to buy.
C3 Critique the viability of small business options by considering: expenses, sales, profit or loss.
Chapter 8 key ideas
- Use the compound interest formula to calculate the total paid, interest paid, and payment amounts for a loan.
- Use the financial component on a graphing calculator to calculate the particulars of a loan.
- List items to consider when starting a small business.
- List the possible costs of starting a small business.
- List the possible costs of running a small business.
- Determine if a business is operating with a: loss, profit, or break even.
- List the things to consider when deciding to buy or lease a vehicle for a business.
8.1 Start a small business
This section starts with a review of using the compound interest formula to calculate the total paid, interest paid, and payment amounts for a loan. You should be able to do this with a graphing calculator as well.
Starting a business can be risky. It is important that a feasible plan be used to ensure success. Make sure that you consider the following:
Consider the costs of starting the business:
Consider the costs of running the business:
Watch the start a business video and do page 294 #1-2, page 296 #3-4, 298 #5-6, page 300 #7-9, page 303 #10-12, and page 305 #1-5.
Starting a business can be risky. It is important that a feasible plan be used to ensure success. Make sure that you consider the following:
- choose a business that interests you and that needs skills that you have
- ensure that the business has a product or service that is needed
- ensure that the business is located where the product or service is needed
- ensure that the business does not have too much competition
Consider the costs of starting the business:
- a place to work - an office, store or workshop
- the equipment needed to make the product or perform the service
- the supplies needed to make the product or perform the service
Consider the costs of running the business:
- rent/lease/mortgage
- office costs - phone, hydro, computers, bank costs, insurance, etc
- business licence, professional fees
- advertising
- employees wages
- property taxes
Watch the start a business video and do page 294 #1-2, page 296 #3-4, 298 #5-6, page 300 #7-9, page 303 #10-12, and page 305 #1-5.
8.2 Operate a small business
In order for a small business to be successful it must eventually make a profit. Revenue is the money that the business earns and expenses are the money that needs to be paid out for bills. Profit = revenue - expenses.
In the beginning, as a small business starts out, it may operate at a loss. This means that the expenses are more than the revenue so instead of a profit, the business makes a loss. Eventually the business will reach the "break even" point, where the revenue and the expenses are the same so there is a zero profit.
Watch the operate a business video and do page 310 #1-3, page 313 #4-6page 317 #7-8, and page 318 #-5.
In the beginning, as a small business starts out, it may operate at a loss. This means that the expenses are more than the revenue so instead of a profit, the business makes a loss. Eventually the business will reach the "break even" point, where the revenue and the expenses are the same so there is a zero profit.
Watch the operate a business video and do page 310 #1-3, page 313 #4-6page 317 #7-8, and page 318 #-5.
8.3 Buy or lease a vehicle for your business
If a vehicle is required for your business you will need to decide if you should buy or lease it. In order to decide which option is better it is a good idea to compare the costs of each.
Please watch the buy or lease a vehicle video and do page 323 #1-3, page 325 #4-6, page 330 #7-9, and page 332 #1-4.
Please watch the buy or lease a vehicle video and do page 323 #1-3, page 325 #4-6, page 330 #7-9, and page 332 #1-4.
Chapter 8 review
Read the key ideas at the top of this page and ensure that you understand them all.
Mark all of your homework with the answer key in the classroom.
Complete and mark the practice test on page 335.
Mark all of your homework with the answer key in the classroom.
Complete and mark the practice test on page 335.