Principles of BusinessBusiness in a Changing World

Definition: What you give up when you make one choice over another

Example Popcorn = One Dollar ($1.00)

OR

Fruit Juice = One Dollar ($1.00)

Definition: What you give up when you make one choice over another

Example Popcorn = One Dollar ($1.00)

OR

Fruit Juice = One Dollar ($1.00)

Opportunity CostOpportunity Cost

Something to Think AboutSomething to Think About

Attending College vs. Not Attending

College

Lifetime earnings of a College

Graduate

vs.

High School Graduate

Attending College vs. Not Attending

College

Lifetime earnings of a College

Graduate

vs.

High School Graduate

GoalsGoals

Short term goals are goals you expect to reach within a few days or a week. Examples: pass a quiz, paint a room

Intermediate goals are goals you expect to reach in the next few months or years. Examples: high school graduation,

summer internship

Short term goals are goals you expect to reach within a few days or a week. Examples: pass a quiz, paint a room

Intermediate goals are goals you expect to reach in the next few months or years. Examples: high school graduation,

summer internship

GoalsGoals

Long-term goals are goals you expect to reach over a period of several years.

Examples: career, marriage

Long-term goals are goals you expect to reach over a period of several years.

Examples: career, marriage

Natural ResourcesNatural Resources

•Natural resources are raw materials supplied by nature that come from the earth, the water, or the air and are used to produce goods.

•Renewable resources are resources that can be replaced•Nonrenewable resources are resources that cannot be replaced

HUMAN RESOURCESHUMAN RESOURCES

Human resources are the people who contribute physical and mental energy to the production process.

Human resources are the people who contribute physical and mental energy to the production process.

CAPITAL RESOURCESCAPITAL RESOURCES

The tools, equipment, and buildings that are used to produce goods and services.

Examples:1. Equipment

2. Buildings

3. Tools

The tools, equipment, and buildings that are used to produce goods and services.

Examples:1. Equipment

2. Buildings

3. Tools

Entrepreneurial Resources Entrepreneurial Resources

The initiative to combine natural, human and capital resources to produce goods or services.

The initiative to combine natural, human and capital resources to produce goods or services.