Mike middleman series#

) Activity Twoįinancial understanding / Mathematics and statistics (The answer could be that he has taught him to ride a bike and continues to sustain this interest in bikes. Have the students discuss how Uncle Lance has sustained and passed on part of Mike’s heritage.

Understand how people pass on and sustain culture and heritage for different reasons and that this has consequences for people (Social Studies, level 4).

Risks are many and varied, from sickness of workers, to bad debts, to unavailability of raw materials, to changes to financial costs like interest and international exchange rates. Risks are dangers to the profitable running of a business. Sustainable and financially responsible businesses make a profit.Īll businesses deal with risks. Obviously, firms that make regular profits tend to have a positive balance between assets and liabilities, whereas those that make regular

A loss is the opposite of a profit, where the costs of production are greater than the revenues from sales.

With a debt of $50.00 and an asset of $50.00 in cash, Mike has a balance of zero because paying off the debt cancels the liability, reducing his assets to nothing.įrom previous activities in this book, students should know the meaning of profit (the money left over from selling goods or services once the costs of production are taken off). Assets may take the form of cash, items of equipment, buildings, vehicles, and in this scenario, Mike’s toolkit.Ī business needs to manage cash flow, its ability to pay bills, and the balance between its assets and liabilities. Assets are things belonging to the business that are of value. The loan from Mike’s uncle is an example of a liability, but things such as the outstanding payments for hire purchase or unpaid rents are other types of liabilities. Aeroplane/car manufacturers, caterers, and real estate agencies are examples of businesses that have irregular cash flow, relying on one-off big sales for their income. Cash flow might be managed by having a good amount of capital to set up the business or by borrowing money from a bank. These businesses need to manage their cash flow so that they have money available to pay costs like wages and rent. Other businesses often have long periods of time between earning sales revenue. Identifying, assessing, and managing risks is an essential attribute to have if people and their businesses are to succeed in the longer term. Mike experiences having an unpaid account that puts his business at risk. Supermarkets and fast food outlets are good examples of businesses with high cash flow. This is usually matched by a large volume of money paid out by the business for the purchase of goods and services it needs for production. Some businesses have high cash flow, which means a large amount of money is paid to the business in a short time. Businesses need accessible cash to pay expenses.

Mike middleman series#

The series of activities based on Mike’s business explores the idea of cash flow and assets and liabilities and the net worth of a business. Cash advance, assets, liabilities, net worth, profit, loss, risk, mark-up, cash flow, creditors’ schedule, financial position, wage, debt, balance.