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Business Financials

Learning financials can be like learning a new language. These activities help students break financial statement down to the basics and understand the interconnectivity of a company’s financial statements.

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Economics of One Unit Activities

The Economics of One Unit is a great application that demonstrates how the cost of doing business factors into the selling price of a product or service. Many students incorrectly choose their selling price before even calculating what expenses they will have with each unit of sale. By calculating labor and materials cost, students will see that no product or service is free of expenses to the business owner, and that successful businesses set smart price points which allow profitability. As students may need to review this concept multiple times before getting a full grasp on it, it may be smart to approach this concept with many different examples.

Income Statement Game

The goal of this exercise is to have students understand how basic accounting principles can assist them in their businesses. Many entrepreneurs’ businesses fail due to poor accounting practices. Therefore, this activity shows students the importance of keeping income statements.

Financial Ratios (ROI and ROS) Relay Race

The ROI Relay Race is a great activity to review calculating the ROI and ROS ratios before having students complete their own on their business plans. One of the other benefits of completing this activity is builds student fluency around working with ratios and percentages. After introducing the game the first time, you could repeat this activity with more ROI/ROS problems, or other financial ratios, as a warm up to multiple classes.