I Teach History: Economics

Monday, February 29, 2016

Understanding Rental Agreements

Today we will be looking over a sample apartment rental agreement and answering some questions about where to find specific pieces of information. Questions include:

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Is the gas and electricity included in the rent? Explain.
When is the rent due?
What is the amount of rent you will have to pay?
What happens if you make nail holes in the walls while hanging pictures or paint the woodwork white? Explain.
What can happen if you allow your friend to repair his motorcycle in your garage or parking space?
Who pays the water bill?
Who is going to clear the sidewalks and driveways during the winter?
Will your security deposit always be returned in full? Explain.
Can you keep a dog in the apartment?
If you have to leave town because of a job change, can you sublet the apartment? Is it possible under any circumstances?
If there is a hail storm and the roof is damaged, who is responsible for fixing it so it doesn't leak?
Can your sister come into the apartment and stay indefinitely?
Can you run a mail order business from your apartment?
When can the landlord raise the rent?
Under what circumstances can the rental agreement be ended by the landlord?

IF YOU DON'T UNDERSTAND ANY TERMS OF A RENTAL AGREEMENT, TAKE IT TO SOMEONE WHO WILL EXPLAIN IT TO YOU. DON'T SIGN ANYTHING YOU DON'T UNDERSTAND!

We will also look over a standard "Move-In/Move-Out Itemized Statement" from the California Apartment Association. It's the standard form that landlords go over in the move-in "walk-through" for new tenants -- and it's where prospective tenants should write down every flaw they see (dirty items, scratched floors, dented walls, nail holes, cracked glass, etc.). The same form will be used when the tenant moves out.

Wednesday, February 24, 2016

8.3: Corporations, Mergers, and Multinationals

8.3: Corporations, Mergers, and Multinationals

Assignments:

Graph Skills (p.203): #1 & 2
Horizontal Merger and Vertical Merger (p.206): #1 & 2
Section 3 Assessment (p.207): #2, 3a, 3b, 4, 5a, 5b, 6, 7a, 7b, 8, 9a, 9b, 10a, 10b, 10c

Think about how corporations are different from sole proprietorship, partnership and franchise.

Choose to Merge:
Imagine that you are the chief executive officer of a major media group. The corporation’s holdings include two major city newspapers and six community newspapers in different cities. The firm has been prospering for many years, but for the last two years, both profits and circulation have declined. Market analysis suggests that part of the reason is reduced advertising revenue caused by competition from the Internet. At its last meeting, the board of directors addressed the issue and has directed you to investigate a possible merger that would strengthen the firm’s position in the marketplace. After some research, your staff has identified the three companies listed below as possible merger candidates.

Read the descriptions of each company and decide which would be the best partner to strengthen
your firm. On a separate piece of paper, write a recommendation to the board. As part of your
proposal, include a response to these questions:

Which merger partner would you recommend?
What kind of merger would it represent—vertical or horizontal?
How would the merger benefit your company?
Why would you not recommend the other companies for merger?

Company 1: AAA Printing: This firm has a successful record printing newspapers, magazines, and textbooks, among other things. It currently prints the newspapers for your firm’s daily and community newspapers. It has been in business for thirty years and has always shown a profit.

Company 2: Golden Broadcasting: This broadcast company owns four local television broadcast stations and six radio stations in cities in your area. The company has been growing in recent years and two of their radio stations were purchased in the last six months.

Company 3: Cramer News Group: This firm owns a major city newspaper and three community newspapers in a different region of the country. The city newspaper has a strong reputation for insightful investigative reporting. Like your own firm, this newspaper group has always been profitable, but it too has seen a drop-off in advertising revenue.

Monday, February 22, 2016

Chapter 7.1

Discuss Chapter 7.1

Chapter Discussion

Visual Glossary: What is Perfect Competition

Video intro
Interactive

Assignment:

Page 159: Characteristics of Perfect Competition Graphic Organizer
Page 163: Assessment # 3, 4, 6, 8

Chapter 7: Section 2

Read Chapter 7 Section 2: Monopoly

Section 2 Assessment (p.173)

Guiding Question #2

Key Terms and Main Ideas (#3-7)

Critical Thinking (#8-10)

Math Skills (#11)

8.2: Partnerships and Franchises

8.2: Partnerships and Franchises

Guiding Question (p.196): Create Chart
Characteristics of Partnerships (p.197): #1 & 2
How Can a Small Business Grow (p.199): #1 & 2
Global Impact (p.200): What are some of the difficulties that business might encounter in their efforts to expand in other countries?
Section 2 Assessment (p.201): #1, 2, 3, 4, 5, 6, 7, 8
How do limited liability partnerships compare with general partnerships?
Items often covered under articles of partnership?
Financial advantages of partnerships?
Money and other valuables make up a person’s or firm’s __________________.
A semi-independent business that pays fees to a parent company in exchange for the exclusive right to sell a product or service is a(n) _____________________.
Three kinds of businesses that are often general partnerships:
Thinking of your own virtual business, would it work as a partnership? Would it work as a franchise? Why or why not?

What product did William Procter make when he first arrived in Cincinnati? What kind of business organization did he have?

What kind of liability did Procter have when he first started his business?

What were the immediate benefits of the partnership?

Why did Procter and Gamble end their partnership? What benefits were they looking forward to?