COURSE STANDARDS

Course: Fundamentals of Business

Program Area: Business Administration
Course Length: Year (2 credits)
Pathway(s): Administrative Specialist
Applied Accounting
Marketing
Date Revised: July 2018
CONTENT STANDARD 1: DEMONSTRATE KNOWLEDGE OF ECONOMICS
PERFORMANCE STANDARD: 1.1: APPLY ECONOMIC CONCEPTS WHEN MAKING DECISIONS.
1.1.1 Define and give examples of economic needs and wants and how they are satisfied - businesses and individuals
1.1.2 Distinguish between economic goods and services
1.1.3 Demonstrate how resources (factors of production) may be used to satisfy economic wants
1.1.4 Define and give examples of scarcity and why scarcity requires individuals and governments to make choices
1.1.5 Define and determine the differences between opportunity costs, marginal costs, and sunk costs
1.1.6 Analyze a decision in terms of opportunity costs, sunk costs, marginal costs and marginal benefits
CONTENT STANDARD 2: DEMONSTRATE KNOWLEDGE OF PERSONAL DECISION MAKING
PERFORMANCE STANDARD: 2.1: USE A RATIONAL DECISION-MAKING PROCESS AS IT APPLIES TO THE ROLES OF CITIZENS, WORKERS,
AND CONSUMERS.
Apply the steps in a rational decision-making process to a situation involving an economic decision by an
2.1.1
individual
2.1.2 Differentiate between types of decisions and identify those that require a formal decision-making process
2.1.3 Apply a rational decision-making process to various types of decisions at different stages of the life cycle
CONTENT STANDARD 3: DEMONSTRATE KNOWLEDGE OF ECONOMIC SYSTEMS
PERFORMANCE STANDARD: 3.1: EXPLAIN WHY SOCIETIES DEVELOP ECONOMIC SYSTEMS, THE BASIC FEATURES OF EACH ECONOMIC
SYSTEMS, AND THE MAJOR FEATURES OF THE U.S. ECONOMY.
Identify questions that must be answered by any economic system (e.g., what is to be produced, how it is to
3.1.1
be produced, and for whom)
Discuss advantages and disadvantages of different types of economic systems (command, market, traditional,
3.1.2
and mixed)
3.1.3 Describe the difference in determining wages and prices in command and market economies
Describe the economic system of the United States and discuss the major features of the U.S. economy (e.g.,
3.1.4
profit, competitive markets, and private ownership of property
Describe the components of the circular flow of economic activity and illustrate how they interact with each
3.1.5
other
3.1.6 Define unemployment and describe how it would affect purchasing power
3.1.7 Analyze and discuss economic indicators that reflect productivity (e.g., GDP, unemployment rate, and CPI)
3.1.8 Explain the relationship between productivity and standard of living
3.1.9 Define gross domestic product and describe economic measures of labor
Analyze the relationship of different components of GDP [Consumption + Investment + Government Spending
3.1.10
+ (Exports – Imports)] or [C + I + G + (X – M)]
3.1.11 Give examples of how inflation and deflation affect purchasing power
3.1.12 Describe the four phases of the business cycle
CONTENT STANDARD 4: DEMONSTRATE KNOWLEDGE OF INTERNATIONAL BUSINESS AWARENESS
PERFORMANCE STANDARD: 4.1: EXPLAIN THE ROLE OF INTERNATIONAL BUSINESS IN RELATION TO IMPORTS AND EXPORTS AND THE
IMPACT ON DOING BUSINESS AT DIFFERENT LEVELS.
4.1.1 Explain the difference between a domestic and international company
4.1.2 Compare and contrast absolute and comparative advantage
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Describe imports and exports and identify goods and services exported to or imported from a particular
4.1.3
country
Explain the role of international business and the impact at local, regional, and national levels (emerging
4.1.4
economic and political changes)
4.1.5 Distinguish between the balance of trade and the balance of payments
4.1.6 Define trade barriers, e.g. embargos, tariffs, quotas
Demonstrate an understanding of the relationship between international events and the daily conduct of
4.1.7
business
CONTENT STANDARD 5: DEMONSTRATE KNOWLEDGE OF SUPPLY AND DEMAND
PERFORMANCE STANDARD: 5.1: ANALYZE THE ROLE OF THE LAW OF SUPPLY AND DEMAND IN THE U.S. ECONOMY.
5.1.1 Explain the principles of supply, demand, and equilibrium price
5.1.2 Define the laws of supply and demand
Identify determinants of supply and demand for goods and services and explain how decisions made by
5.1.3
individual consumers (buyers) and producers (sellers) affect supply and demand
5.1.4 Identify factors that affect the price of goods or services in markets that are not purely competitive
Explain why quantity demanded and quantity supplied change with price levels and how to determine the
5.1.5
equilibrium price
5.1.6 Explain why supply and demand shifts occur
5.1.7 Explain the concept of elasticity and inelasticity and its importance to buyers and sellers
5.1.8 Explain why prices set by supply and demand are measures of the relative scarcity of a good or service
Identify the effect of changes in the relative price of a substitute or complementary good on supply and
5.1.9
demand
5.1.10 Distinguish between fixed and variable costs
5.1.11 Explain the law of profit maximization (i.e., marginal cost equals marginal revenue)
CONTENT STANDARD 6: DEMONSTRATE KNOWLEDGE OF EMPLOYMENT COMMUNICATIONS
PERFORMANCE STANDARD: 6.1: INTEGRATE ALL FORMS OF COMMUNICATION IN THE SUCCESSFUL PURSUIT OF A CAREER.
6.1.1 Write a cover letter, resume, and thank you letter for job opportunities
6.1.2 Complete job application forms relevant to current practices
6.1.3 List and discuss qualities that employers expect in potential employees
Discuss the significance of nonverbal communications in the interviewing process and the importance of
6.1.4
appropriate dress
Respond to mock interview questions, participate in and analyze mock interviews, emphasizing critical times at
6.1.5
the beginning and the end of an interview
CONTENT STANDARD 7: DEMONSTRATE KNOWLEDGE OF FINANCIAL SERVICES
PERFORMANCE STANDARD: 7.1: ANALYZE AND SOLVE BUSINESS PROBLEMS FOR CASH MANAGEMENT.
7.1.1 Identify various types of financial institutions and the services provided by these institutions
Identify the rights and responsibilities associated with using a checking account and the differences between
7.1.2
various checking accounts
7.1.3 Describe the steps involved in opening and using a checking account
Differentiate among types of electronic monetary transactions (e.g. debit cards, ATM, and automatic
7.1.4
deposits/payments offered by various financial institutions
7.1.5 Maintain check records (e.g., check registers and deposit slips)
7.1.6 Compare and contrast the various forms of endorsement
7.1.7 Describe and demonstrate the steps involved in the bank reconciliation process
7.1.8 Identify other means of transferring funds (e.g., money orders and certified checks)
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CONTENT STANDARD 8: DEMONSTRATE KNOWLEDGE OF PAYROLL
PERFORMANCE STANDARD: 8.1: ANALYZE AND SOLVE BUSINESS PROBLEMS FOR PAYROLL RECORDS.
8.1.1 Calculate gross earnings (e.g., salary, hourly rate, commission, or piece rate)
8.1.2 Calculate payroll withholdings, other deductions, and net earnings
CONTENT STANDARD 9: DEMONSTRATE KNOWLEDGE OF THE ROLE OF CONSUMERS
PERFORMANCE STANDARD: 9.1: DEMONSTRATE SOUND CONSUMER DECISION MAKING WHEN PURCHASING GOODS OR SERVICES
AND THE EFFECTS THEY HAVE ON BUDGETING.
Identify ways in which individuals and families obtain financial resources and evaluate available buying options
9.1.1
given personal financial resources
9.1.2 Identify the steps in a rational decision-making process and how they are used in making a buying decision
9.1.3 Define and classify fixed, variable, and periodic expenses
Construct and use a personal spending plan and evaluate it according to short- and long-term goals and how
9.1.4
income and spending patterns change throughout the life cycle for the typical person and family
9.1.5 Calculate and apply the Rule of 72
9.1.6 Comparison shop for purchases
9.1.7 Determine advantages and disadvantages of using credit
9.1.8 Define interest as a cost of credit and explain why it is charged
Explain how the amount of principal, the period of the loan, and the interest rate affect the amount of interest
9.1.9
charged
9.1.10 Explain why the interest rate varies with the amount of assumed risk
Identify methods of establishing and maintaining a good credit rating and explain credit ratings and credit
9.1.11
reports and why they are important to consumers
CONTENT STANDARD 10: DEMONSTRATE KNOWLEDGE OF ACCOUNTING
PERFORMANCE STANDARD: 10.1: DEMONSTRATE KNOWLEDGE OF ACCOUNTING.
10.1.1 Identify and explain the relationship between assets, liabilities, and equity on the balance sheet
Identify the classifications in an income statement and explain their relationship to each other (revenue,
10.1.2
expense, gains, or losses)
Calculate net sales, cost of goods sold, gross profit, operating expenses, and net profit for the income
10.1.3
statement
10.1.4 Calculate total assets, liabilities, and owner's equity for the balance sheet
CONTENT STANDARD 11: DEMONSTRATE KNOWLEDGE OF MARKETING
PERFORMANCE STANDARD: 11.1: FUNDAMENTALS MARKETING CONCEPTS.
11.1.1 Define and describe the marketing concept
11.1.2 Explain the impact of marketing on the consumer both nationally and/or global economies
11.1.3 Explain the diverse of activities involved in marketing
11.1.4 Identify the components of marketing (i.e., product, place, price, promotion, people)
PERFORMANCE STANDARD: 11.2: MARKETING SEGMENTATION.
Describe various methods of market segmentation (e.g., demographics, psychographics, benefits, product
11.2.1
usage) and why it’s important in the achievement of market goals
11.2.2 Identify a target market for a given product or service and the strategies used to reach a given market
Define and give examples of the concept of market share and estimate market share for a specific product or
11.2.3
service
PERFORMANCE STANDARD: 11.3: PRODUCT PACKAGING.
11.3.1 Identify the common elements of a product's packaging
11.3.2 Explain the various functions of packaging and why each is important
PERFORMANCE STANDARD: 11.4: ROLES OF PRICING.
11.4.1 Identify the factors that will influence product price (cost, quality, competition, and brand loyalty)
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11.4.2 Calculate product prices using a variety of methods (markdown, markup, breakeven)
11.4.3 Identify the various objectives of pricing (product line, psychological pricing, penetration, skimming)
PERFORMANCE STANDARD: 11.5: DISTRIBUTION PROCESS.
11.5.1 Explain how channel management related to other marketing activities
11.5.2 Explain the role of utility in facilitating exchange (i.e., form, time, place, possession, information)
PERFORMANCE STANDARD: 11.6: ADVERTISING.
11.6.1 Identify the various mediums available for advertising
11.6.2 Identify the advantages and disadvantages of marketing a business on social media
11.6.3 Analyze customer's rational and emotional buying motives and decisions
PERFORMANCE STANDARD: 11.7: COMPONENTS OF MARKETING PLANS.
Identify the steps involved in the development of a marketing plan and demonstrate the ability to develop a
11.7.1
marketing plan
WORKPLACE READINESS STANDARDS * SEE WORKPLACE READINESS STANDARDS DOCUMENT FOR MORE DETAILS
WRS2: INTEGRITY.
WRS4: SELF-REPRESENTATION.
WRS5: DIVERSITY AWARENESS.
WRS7: CREATIVITY AND RESOURCEFULNESS.
WRS9: READING AND WRITING.
WRS11: HEALTH AND SAFETY.
WRS16: MATHEMATICS.
WRS18: JOB-SPECIFIC TECHNOLOGIES.
WRS21: TELECOMMUNICATIONS.