F1.5 Describe trading, lending, borrowing, and donating as different ways to distribute financial and other resources among individuals and organizations.
Activity 1: A Financial Resource - Distribution Diagram
Discuss with students the different possible ways that businesses, financial institutions, employees, and charities may access funds (financial resources) to be able to operate. Include terms such as donation, loan, borrowing, and salary. Ask students to draw a diagram showing the distribution of such funds among businesses, financial institutions, employees and charities.
Possible Questions
- Is the distribution of resources equal? Is the distribution of resources fair? Describe the difference between these two statements.
- How might the distribution of the different types of financial resources differ between a business and a charity? between a financial institution and an individual?
- On which element of the diagram do loans have a greater impact? Salaries? Donations? Why do certain financial concepts or products affect the distribution of financial resources differently?
Activity 2: Relationships Explained
Encourage students to interview the owner/manager of a local business. Have students compile a list of the business' expenses as well as a list of income.
Possible Questions (Or Potential Interview Questions)
- What kinds of financial decisions are made to keep a business profitable?
- How does a company prepare for financial obstacles?
- How does a company determine the cost of goods sold or services provided?
- Who is the company's target clientele? What effect will the target clientele have on the financial decisions to be made?