Transcript Junior Achievement 6.1 - Santee School District

Junior Achievement 6.1
“Almost There”
Let’s Review Vocabulary
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Selling Price:
The amount of money a buyer pays and a
seller receives for the purchase of a good or
service.
Inventory:
Items of goods for sale that a business has in
stock.
“The greatest ability is
dependability.”
- Curt Bergwal
Do you agree with this
statement?
Why or why not?
Why are business people who are
dependable more successful in their
business pursuits?
Today you will be preparing
important paperwork as a
business team for your visit
to JA BizTown.
Have you ever seen a loan
application?
A loan application is a written
request to borrow money.
Some JA BizTown business will need to
take out a loan from a bank in order to
obtain start up funding. (The banks,
foundation, and City Hall will not need
to take out loans. They get their income
from other sources.)
Have you ever heard of a
promissory note?
A promissory note is a written
promise to repay the money you
borrow at a stated time.
When you pay back the loan, you
also pay “interest’. This is an extra
amount of money the bank charges
for letting you use their money.
Let’s look at the procedures for
borrowing and returning money:
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Loan applications and promissory notes are
completed by your business.
These are given to the JA BizTown Bank CEO (Some
businesses will use Washington Mutual and some will
use San Diego National).
The CEO signs and approves these documents.
Throughout the day, as businesses deposit “revenue”
(money earned) in the bank, those deposits are
automatically transferred toward payment of the
business loan.
After the loan is paid, your business will start to earn
a profit!
Now it’s time to work
together to fill out your
Business Loan Application
and Promissory Note. These
are in your Business
Workbook. (transparency 6.1)
Use the salaries from your Business
Costs worksheet. Remember to
multiply them times 2, because
everyone will have two paychecks on
BizTown day.
Add up your total salaries
with your total expenses and
you will know how much
money you will need to
borrow.
Your promissory note should
be filled out in that amount.
Don’t worry about adding
the 5% interest that the
bank will charge you. That
will be figured out by the
computer at BizTown on the
day you visit.
Once you have completed these
documents, please give them to your
teacher. They will be brought to JA
BizTown on the day of our visit.
Your loan is ready to be
secured. Congratulations!
Some JA BizTown businesses
need to set prices today, too.
BestBuy
BizMart
BizTown Biotech
San Diego Sports
SeaWorld
How much money do you
need to start your business?
(Check your Business Costs page.)
Multiply that amount by 5%
(0.05) and add this to your
dollar amount (interest
charged by the bank).
What kind of profit do you
want to make? (40-60 dollars
is about right.) Add this
amount to the bank loan
amount. What is your total?
Divide the total by the
number of things you have
to sell. That will give you an
idea of how much you need
to charge per item to make a
profit.
Set prices for each item.
Whole dollar amounts only.
Most popular items should
be priced the highest
($3 or $4)
Least popular items should
be priced the lowest ($1)
CEO should list the prices
on the Inventory Sheet and
add up for “total possible
income”.
Subtract your loan amount
from your income. The
difference is your profit.
Whew! You’re done!
It’s good to know that your
are all set with your prices
and you know you can make
a profit.
Don’t forget to fill our your Word
Map on page 87.