Why businesses exist and how they are structured
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Introduction
Students investigate why businesses exist and the different ways they can be structured. They develop and apply criteria, including tax implications, to decide which business structure is more suitable in different scenarios.
Achievement standard
By the end of Year 7, students describe how decisions are made to allocate limited resources to individuals and communities in an economy. They describe the reasons businesses exist and types of businesses, and identify how entrepreneurial characteristics contribute to the success of a business. They describe the reasons individuals choose to work, how they may derive an income and the types of work that exist. Students identify the rights and responsibilities of individuals and businesses in terms of products and services.
Students develop questions to investigate an economic and business issue. They locate, select and organise data and information from sources. They interpret information and data to identify economic and business issues, trends or effects. They develop a response and identify potential costs and benefits. Students use economic and business knowledge, concepts, terms and sources to create descriptions and explanations.
Content descriptions
Economics and Business Knowledge and Understanding
The reasons businesses exist and how different types of businesses provide goods and services. (AC9HE7K02)
Economics and Business Skills
Interpret information and data to identify economic and business issues, trends and economic cause-and-effect relationships. (AC9HE7S03)
Develop a response to an economic and business issue, identifying potential costs and benefits. (AC9HE7S04)
Create descriptions and explanations, using economic and business knowledge, concepts and terms, and referencing information and data from sources. (AC9HE7S05)
Student learning resources
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Business structures
The pros and cons of different business structures
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Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group.
- As a class, brainstorm the reasons businesses exist and write them on the board. Examples include:
- To make a profit.
- To produce goods and services.
- To satisfy the needs and wants of customers.
- To provide employment.
- Read the explainer as a class. Alternatively, have students read the explainer individually or in pairs and take note using the Cornell note taking system.
- You may also want to play the business structures video (play the first 2:05 minutes).
- Students complete the worksheet.
- Discuss with students which business structures they identified as being the most appropriate for each business and why.