Download Economics of Business-VE II - Kings County Office of Education

Kings County Board of Education Approval – June 1, 2011
California Department of Education Certification – January 2009
Kings Regional Occupational Program
Course Information
Course Title:
Economics of Business
(Virtual Enterprise II)
Course #: 04EB
CBEDS Title:
Business Management
CBEDS No.:
Industry Cluster: Marketing, Sales & Services
Pathway: Entrepreneurship
Jobs Titles:
43-3031.00
43-9061.00
43-6014.00
41-9099.00
Accounting Clerk
Office Clerk
Secretary
Sales Agent
CDE #: 1132
4637
Career Cluster: Business, Management and Administration
13-1022.00
43-1011.00
41-1011.00
11-1021.00
Purchasing Clerk
Office Manager
Manager, Sales
General and Operations Manager, Owner
Course Description:
This course introduces students to the study of Economics within the context of entrepreneurship and business
administration. Students will learn the fundamental concepts of economics as they relate to scarcity, supply and demand,
choices and effective decision-making, and economic systems. They will learn the relationship between microeconomics
and macroeconomics and small business, the implementation of business and marketing plans, risk management and
human resources management.
Students apply this knowledge in a two-hour simulated business that is set up and run by students to prepare them for
working in a real business environment. The students determine the nature of their business, its products and services,
its management and structure, and learn the daily operations of a business under the guidance of a consultant with the
support of a real business partner.
Total Hours:
306 hours Classroom and 90 hours of optional Community Classroom / CVE
Course is set-up in two parts – (76 hrs) Economics of Business core component (for a-g elective credit)
(230 hrs) Virtual Enterprise lab component
Textbook/Materials:
Board approved economics textbook from individual high schools
Business in a Global Economy, Dlabay and Scott, South-Western Educational Publishing, 1996.
Entrepreneurship, Moorman and Halloran, South-Western Publishing Co., 1993.
Glencoe Accounting, Guerrieri et. Al., Glencoe Div. of Macmillan/McGraw Hill School Publishing Co. 1995.
Marketing Essentials, Farese, Kimbrell, Woloszyk, Glencoe Division of McGraw-Hill Companies, 1997.
Raving Fans, Kenneth Blanchard and Sheldon Bowles, William Morrow & Company, Inc., New York, 1993.
Software: Microsoft Office Professional, Peachtree Accounting, Microsoft Outlook, Front Page
Recommended Prerequisites: Must be 12 grade or permission of teacher
Certification:
Maintain a minimum “C” grade point average for length of course
Demonstrate punctuality, acceptable attendance and responsibly complete assignments
Academic credit:
Lemoore High School – 20 units / 5 units of a-g elective credit / HS Economics credit
Hanford High School – 20 units / 5 units of a-g elective credit
Corcoran High School – 20 units / 5 units of a-g elective credit
Articulation:
none
Last Update:
December 2008 (minor changes)
1144 W. Lacey Blvd., Hanford, CA 93230 ~ Tel: 559 589-7026 ~ FAX: 559 589-7007
Academic Standards
Writing 9/10-2.1+5-6
Writing 11/12-2.4-55
Reading 9/10-2.6
Reading 9/10-2.1
Speaking 9/10-2.3+5-6
NumberSense 7-1.7
Econ 12.1.0-2
Econ 12.2.0-2+4+8+10
Econ 12.3.0-1+3-4
Econ 12.4.1-3
Econ 12.5.2-3
Econ 12.6.0+3-4
CTE Standards
MSS F3.1-3+5-6
MSS F4.1+3-4
MSS F5.0
MSS F6.2-3
MSS F7.0
MSS F8.1+4
MSS F9.1+3-4
MSS F10.1-5+7
ELRs - All
Industry Standards -
Instructional Methodologies –
Kings Regional Occupational Program
Economics of Business Course
Page 2
Economics of Business
Virtual Enterprise II
Course Outline
I.
Introduction to Economics
24 hours
Econ 12.1
A. Basic Concepts
1. Recognize and define key economic terms.
2. Demonstrate the way choices are reflected in economic thinking and explain the relationship of economics
theory to economic decision-making.
3. Distinguish between macroeconomics and microeconomics
4. Explain the relationship between scarcity and the need for choices.
Econ 12.1.1
5. Explain how prices reflect scarcity of goods and services and perform the allocation function in a market
economy.
Econ 12.2.4
6. Explain the relationship of trade-offs to opportunity costs. Relate opportunity costs to one’s personal
circumstances, in a business setting, and in society as a whole.
Econ 12.1.2
B. Supply and Demand
1. Demonstrate an understanding of the law of demand, demand curves, and how it affects production. Econ 12.2.1
2. Demonstrate an understanding of the law of supply, supply curves, and how businesses determine how much
to produce.
Econ 12.2.2
3. Explain the role of price in a market system and how supply and demand interact to set prices.
4. Demonstrate an understanding of income distribution.
C. Economic Systems
Econ 12.2
1. Explain why societies develop economic systems, identify the basic features of different systems, and discuss
the major features of the United States economy.
2. Describe the implications of each of the economic systems on business ownership.
3. Explain why ownership of resources is a way to understand the extent of government intervention in an
economy.
II.
Introduction to Business Ownership
24 hours
A. Define entrepreneurship and list the personality traits required to be a successful business owner.
B. Distinguish between proprietorship, partnership, corporation, franchise, and a cooperative.
C. Compare starting a new business versus buying an existing business.
D. Define and clarify the relationship between microeconomics and small business.
Applied Performance Standard:
Students working as a team will…
 develop and consider the feasibility of a variety of business scenarios.
III. Measuring Economic Performance
10 hours
A. Illustrate basic concepts of supply, demand, market price by creating charts and graphs.
B. Explain inflation and its effect on the Consumer Price Index.
C. Define Gross National Product and give examples of goods and services used.
D. Demonstrate an understanding of measures of unemployment and the relationship between economic stability and
full employment.
Econ 12.5.2
Applied Performance Standard:
Students working as a team will…
 develop appropriate economic performance charts relating to their product.
IV. Creating the Business Plan
20 hours
A. Define a business plan and list the reasons for having a business plan. MSS F3.6
MSS F10.1/Writing 9/10-2.4
B. Explain the importance of business location.
C. Explain the steps in the decision-making process and utilize a decision-making model for a small business problem.
Kings Regional Occupational Program
Economics of Business Course
Page 3
D. Describe the role of profit as the incentive to entrepreneurs in a market economy.
Econ 12.2.8
E. Discuss the economic principles that guide the location of agriculture, production and industry and the distribution of
transportation and retail facilities.
Econ 12.2.10
Applied Performance Standard:
Students working as a team will…
 create a business plan which contains all required parts and is fiscally sound.
MSS F10.2
 present business plan to a financial institution
Speaking 9/10-2.5
 recruit local business partner/s.
 create a company logo and develop company forms.
 establish an Administration Department that will be responsible for workflow, office layout, correspondence,
establishing departmental budgets, the company directory creating a web site.
V.
60 hours
Essentials of Marketing
A. Identify the functions of marketing: product development, distribution, transportation, storage, financing, pricing,
communication, selling and exchange, and information evaluation.
B. Explain the five “P”s of marketing and relate the questions to established businesses: Product, Patron, Price, Place
and Promotion.
C. Relate the five “P”s to the four questions economists ask: What to produce? How to produce? and For Whom to
produce?
D. Define target marketing.
E. Explain the six parts of a marketing plan: description, objective, competition, environment, marketing mix, and
budget.
MSS F10.3
F. Explain the market system in the United States and discuss the connection between marketing and the market
economy.
Applied Performance Standard:
Students working as a team will…
 analyze the structure of various marketing materials.
Reading 9/10-2.1
 develop company advertisements using word processing and desktop publishing software.
MSS F10.4
MSS F10.3+7
 create a company catalog of merchandise
 write a company newsletter.
Writing 11/12-2.4
 create company presentations using presentation software, digital photos, audio,
scanning, and animation.
Speaking 9/10-1.7+2.6
 create a company web site using web authoring software.
MSS F4.4
 coordinate a “Grand Opening” for the company.
 establish a Sales/Purchasing Department which is responsible for international trade research, MSS F10.5
consumer needs, competition, procedures for acquiring clients, and determining prices.
NumSense 7-1.7
VI. Finance, Money and Financial Institutions 50 hours
A. Money
1. Understand the circular flow of money to the economy.
2. Demonstrate an understanding of monetary policy.
Econ 12.3.4
B. Financial Institutions
1. Demonstrate an understanding of financial institutions and the role of the Federal Reserve System in
stabilizing the value of the dollar within the nation’s economy.
Econ 12.3.4
2. Distinguish between short-term and long-term interest rates and explain their significance.
Econ 12.5.3
3. Demonstrate an understanding of credit, its use in the American economic system, and how credit plays a role
in the lives of most Americans.
4. Demonstrate an understanding of consumer rights and responsibilities in the credit transaction.
C. Finance and Investments
1. List reasons for saving, identify ways to save and identify possible investment vehicles.
2. Explain the importance of financing to a business.
Kings Regional Occupational Program
Economics of Business Course
Page 4
3.
4.
Explain the role of stock, the stock market, and its affect on the economy.
Demonstrate an understanding of property rights as it pertains to ownership of labor, contracts, and property.
Applied Performance Standard:
Students working as a team will…
 present their business plan to the business loan officer of a local bank.
Speaking 9/10-2.5
 start and maintain a branch bank.
NumSense 7-1.2
 create financial statements using spreadsheet and word processing software.
 use accounting software to manage the income, expenses and payroll.
 establish an Accounting Department that will be responsible for maintaining the branch bank, process
Algebra 13.0
payroll, and maintain accounting records.
Student will…
 administer personal budget and checking account.
 participate in consumer purchasing related to the virtual economic system.
VII. Managing Human Resources
30 hours
CPS 2
A. Explain the importance of managing employees efficiently; the consequences of poor management and the results
of good management techniques.
B. List the steps in hiring employees.
C. Discuss the effects of wage differences, technology, types of skills workers need, and international competition on
the labor market.
Econ 12.4.2
D. Define business ethics and explain the importance of ethical standards and social responsibility in the workplace.
E. Discuss laws that apply to equal opportunity employment, ADA, sexual harassment, and minors.
MSS 8.1
F. Discuss wage differences among jobs and professions in context of supply and demand.
Econ 12.4.3
G. Identify ways to evaluate performance and to help employees improve performance.
H. Discuss the dynamics of conflict resolution and explain the role of mediation in settling disputes.
MSS F9.4
I. Understand the operations of the labor market, the establishment of labor unions and the role of collective MSS F9.3
bargaining in the United States.
Econ 12.4.1
Applied Performance Standard:
Students working as a team will…
 establish a hierarchy of positions within the business and write job descriptions.
 interview and hire new employees.
 design and write an employee manual.
 create a company flow chart.
VIII. Risk Management
10 hours
A. Describe how crime affects the financial stability of a business and ways to combat crime.
B. Explain how difference types of insurance protect a business.
C. Discuss the principles of collection in managing bad debt losses.
D. Understand the risk involved in personal injury and how good safety practices can deter it.
E. Understand product liability claims.
Speaking 9/10-2.3
Writing 9/10-2.6
CPS 5
MSS F6.2-3
Applied Performance Standard:
Student working as a team will…
 analyze the risk involved in the new business.
 develop a risk management plan for the business.
IX. Governmental Policies and Regulations
10 hours
Econ 12.3
A. Describe the goals of governmental fiscal policies and their influence on production,
Econ 12.3.3
employment, and price levels.
B. Explain the importance of government rules for businesses and relate specific regulations to individual businesses.
Kings Regional Occupational Program
Economics of Business Course
Page 5
C. Explain the role the United States plays in the market economy through the provision
Econ 12.3.1
of public goods and services.
D. Explain the role government plays in regulating the economy and establishing law and order.
MSS F8.4
E. Demonstrate an understanding of tax policy in the market economy.
F. Demonstrate an understanding of recordkeeping and accounting.
G. Demonstrate an understanding of wages, wage rates, and minimum wage laws.
H. Compute employee wages, deductions, and payroll taxes and explain the procedures for documentation and
reporting.
Applied Performance Standard:
Students working as a team will…
 Research all laws and regulations pertaining to the business: local, state and federal.
 Create and maintain a database for accurate records.
 Maintain a payroll system.
X.
Global Economics and International Trade 8 hours
A. Demonstrate an understanding of the geographical/political/economic spheres.
B. Identify the gains in consumption and production efficiency from global trade.
C. Explain foreign exchange, how exchange rates are determined, and the effects of the
dollar’s gaining or losing value relative to other currencies.
D. Demonstrate an understanding of the United States and its relations with Third World nations.
Econ 12.6
Econ 12.6.1
Econ 12.6.4
Econ 12.6.3
Applied Performance Standard:
Student will…
 understand international etiquette standards.
 calculate time differences around the world.
 calculate exchange rates for various countries.
XI. Technology and its Affect on Economics
50 hours
A. List the technologies that are presently fueling economic growth in the United States.
B. Compare how computer technology has changed the business environment.
C. Demonstrate ethics while working with on-line communications.
Applied Performance Standard:
Students will…
 demonstrate the use of e-mail and threading of messages.
 learn to use a personal information manager to increase productivity.
 use the internet for informational searches, e-mail, and business transactions.
 demonstrate proficiency in the use of computer software, hardware, and terminology.
XII. Career Preparation
10 hours
Career Preparation Standards are threaded through out the course
A. Understand how personal skill development and responsibility affects employability.
B. Discuss the principles of effective interpersonal skills and group dynamics.
C. Demonstrate the importance of good academic skills, critical thinking and problem solving skills.
in the workplace by developing project proposals, time lines, and final products.
D. Demonstrate the principles of good communication: written, orally, and non-verbal.
E. Understand career paths, educational requirements and strategies for obtaining employment.
F. Understand and adapt to changing technology.
CPS 7
MSS F4.2
MSS F4.3
ESLR 5
CPS 1 & 6
MSS F7.0
MSS F9.1
MSS F5.0
ESLR 1/CPS 4
MSS F3.3+2
MSS F3.5
Applied Performance Standard:
Student will…
 produce a professional portfolio and/or a “webfolio” as a useful product for obtaining employment. MSS F3.6
Kings Regional Occupational Program
Economics of Business Course
Page 6




create an acceptable resume and application.
Writing 11/12-2.5
Writing 9/10-2.5
generate business letters including a cover letter.
MSS F3.1
demonstrate professional ethics, phone etiquette, teamwork, and appropriate workplace attire.
demonstrate understanding of business-like attitudes: punctuality, timeliness of assignments, using time
ESLR 3&4
productively, and compensating for absences.
XIII. Community Classroom
90 hours optional
Students will apply skills in a professional setting, working under the direction of a business supervisor. Students
will demonstrate good employment skills, develop a better understanding of how the skills learned in the classroom
are applied in an actual work setting.
Thinking and Problem Solving Skills found in Applied Performance Standards throughout
Kings Regional Occupational Program
Economics of Business Course
CPS 3
Page 7
STANDARDS REFERENCE GUIDE
Academic Standards
Writing 9/10-2.4
Writing 9/10-2.5
Writing 9/10-2.6
Writing 11/12-2.5
Writing 11/12-2.6
Write persuasive composition
Business letters
Technical documents
Job applications and resumes
Multimedia presentations
Reading 9/10-2.1
Reading 9/10-2.6
Reading 11/12-2.3
Workplace documents
Follow technical directions
Verify facts by using a variety of documents
Speaking 9/10-1.7
Speaking 9/10-2.3
Speaking 9/10-2.5
Speaking 9/10-2.6
Use props, visual aids, or graphs in presentation
Interviewing techniques
Deliver persuasive arguments including evaluation and analysis of problems and solutions
Descriptive presentation
NumberSense 7-1.7
Algebra 13.0
Markups, discounts, commissions, profit, interest
Add, subtract, multiply and divide while solving conceptually challenging problems
Economics 12.1
Economics 12.1.1
Economics 12.1.2
Economics 12.1.4
Economics 12.2
Economics 12.2.8
Economics 12.2.10
Economics 12.3
Economics 12.3.1
Economics 12.3.3
Economics 12.3.4
Economics 12.4
Economics 12.4.1
Economics 12.4.2
Economics 12.4.3
Economics 12.5.2
Economics 12.5.3
Economics 12.6
Economics 12.6.3
Economics 12.6.4
Common economic terms
Scarcity and need for choices
Opportunity cost, marginal benefit, marginal cost
Role of private property
America’s market economy
Profit as an incentive to entrepreneurs
Principles that guide location and distribution
Influence of federal government
Role of the government
Aims of governmental fiscal policy
Aims of governmental monetary policy
Elements of the labor market
Unions
Goods, services, workers needed
Wage differences among jobs and professions
Unemployment rate
Interest rates
International trade
International political borders
Foreign exchange
Kings Regional Occupational Program
Economics of Business Course
Page 8
CTE Standards from Marketing Sales and Services
CTE MSS F3.1
CTE MSS F3.2
CTE MSS F3.3
CTE MSS F3.5
CTE MSS F3.6
CTE MSS F4.1
CTE MSS F4.3
CTE MSS F4.4
CTE MSS F5.0
CTE MSS F6.1
CTE MSS F6.3
CTE MSS F7.0
CTE MSS F8.1
CTE MSS F8.4
CTE MSS F9.1
CTE MSS F9.3
CTE MSS F9.4
CTE MSS F10.1
CTE MSS F10.2
CTE MSS F10.3
CTE MSS F10.4
CTE MSS F10.5
CTE MSS F10.7
Personal qualifications, interests, knowledge
Career opportunities
Career plan
Past, present, future trends
Job application, resume, interview, portfolio
Technological advances
Influence of emerging technology on the economy
Web sites development and the internet
Problem solving and critical thinking
Policies and procedures for employee safety
Financial impact of environmental and ergonomic risks
Responsibility and flexibility
Regulatory agencies
Laws and regulations that affect businesses
Teamwork, leadership, and citizenship
Work teams
Conflict resolution
Information for making marketing decisions
Financial concepts
Product and service management
Promotion concepts and strategies
Determining customer needs
Pricing concepts and strategies
CTE Standards from Entrepreneurship
Kings Regional Occupational Program
Economics of Business Course
Page 9