Risk of an Investment or new Business: Measure of potential for Financial Loss. Identification of numerous factors involved in evaluating/assessing Risk: Statistical data on success or failure of similar businesses if available, competition, economic profile of business environment (City, town, state etc.), ratio of money borrowed for initial investment with expected value of the business , quality of workforce (training etc.).
Assignment
Read Text. pp. 362-364
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
During today's session on the topic of business investment Risk, Colson was very attentive and appeared to have a "natural knack" for understanding several key factors involved in assessing the Risk of a financial investment. I provided him with hypothetical and real examples of businesses (both large and small0 to enable him to fully connect with significant factors and conditions which affect the Risk of a sizable financial investment.
Financial Risks in Business: How to evaluate risks for new businesses or for investments. Factors involved in high risk vs. reducing/minimizing risk of a financial investment.
Assignment
None
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
Today's important lesson with Colson was the topic of Risk in Business.
Specifically presented factors, data, and other conditions involved in evaluating possible risk factors in a new business or financial investment. Colson was familiar with the concept of risks with businesses.
Quiz : Return on Investment, Various Financial Terms
Lesson Outline
Review of Simple Interest Calculations. Quiz: Return on Investment, Profit, Simple Interest , cash flow, 5 Principles of Financial Literacy.
Assignment
None
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
Colson worked diligently and productively during today's Quiz on Financial Literacy topics, Return on Investment and Simple Interest. He made good use of class notes and previous example problems.
Review for Quiz. Budget, cash flow, expenses, net benefit (profit) and Return on Investment (R.O.I). Practice examples with R.O.I., profit, and cost of investment. Definition of Cash Flow and real world examples.
Assignment
Study for Quiz
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
During today's lesson, Colson learned about cash flow, net benefit (profit), and was very attentive during my review of key topics for the Quiz tomorrow. He was given a practice example on R.O.I. which involved sales, initial investment, and expenses of a new hypothetical Surf Shoppe.
Return on Investment formula. Real world example and calculations of Return on Investment for a new "Gelato Shoppe" business. Discussion of
R.O.I. for a "safe investment" such as a Bank CD vs a riskier investment in a new entrepenurial business start-up. Explanation that R.O.I. as a percentage outcome.
Assignment
None
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
During today's lesson Colson was very interested and well focused on the important method of calculating Return on Investment. I provided him with an R.O.I. formula whichwe used to dertermine the R.O.I. of a new hypothetical "Gelato Shoppe" business which I created for him as a demonstration real world example. Colson's Math abilities are strong and simply needs prompting to check for errors in details which impact a correct result.
Return on Investment: Use of R.O.I. formula with calculations. Real world type examples with Return on Investment. Concept of negative
Return on Investment involving no profit: Partial loss of initial investment cost.
Assignment
None
Session Minutes
45
Minutes Student Attended
0
Lesson Comments
Colson was absent from Financial Literacy class today due to early dismissal.
Return on Investment: Formula for R.O.I.: Examples of how profit and initial investment cost are key factors in R.O.I. Risk factors involved in considering or expecting a certain Return on Investment. Video and included calculations on R.O.I.
Textbook Presentation, Financial Projections/Performance Criteria for Companies.
Lesson Outline
Presentation of Financial Literacy Text: Review of Contents/Chapter Topics. Discussion of Financial Planning/Projections of Companies and Performance Criteria. Multi-year Financial Planning and Goals for Profits and Sales etc. Shut down/Closure of Businesses due to underperformance of Sales and Profits. Announcement of one week Mini-Project.
Assignment
Read Text pp. 4-9
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
During today’s lesson with Colson, I presented him with the new Financial Literacy textbook recently selected and discussed the key Chapters/topics coverage expected. Colson was very attentive with my explanations of Financial Planning and goals for Annual Sales and Profit. I gave him specific examples of underperforming businesses, reasons for closure, and characteristics of successful financial projections
Simple Interest and Rate of Return: Calculation methods and examples
of a small business investment using a specific interest rate. Explanation of Rate of Return as a percentage of an initial investment.
Definitions of Principal and Balance.
Assignment
None
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
Today's lesson with Colson focused upon the important topics of simple interest and rate of return.
Business Budgeting: Financial plan of expenses including supplies, labor, insurance, energy, mortgage/rent, and emergency repair funds. Concept of borrowing from banks to grow a business through purchasing additional supplies/labor and investing profits to achieve a desired rate of return.
Assignment
None
Session Minutes
45
Minutes Student Attended
45
Lesson Comments
Today's lesson with Colson focused primarily on the major considerations and planning that is necessary to establish an effective business budget. Various expenses, expected earnings, and emergency/repair funds were explained. Colson seemed energized and engaged in this budgeting topic. The concept of "Save for a rainy day" was also introduced.
