When Shaquille O'neal was drafted into the NBA, he spent the first million that he earned within 30 minutes. O'neal then received a phone call from his banker, who scolded him, and told him that he would end up joining the list of former athletes who ended up broke if the current trend continued. O'neal decided to sharpen up his education on business and finance. He returned to college, completing his Bachelor's degree, followed by his M.B.A, and lastly, his Ed.D. That's right, he is now Dr. Shaquille O'neal. As of today, Shaq is the joint owner of 155 Five Guys Burgers restaurants, 17 Auntie Annie's Pretzels restaurants, 150 car washes, hour fitness centers, a shopping center, a movie theater, and several Las Vegas nightclubs. In addition to his business holdings, O'neal still earns $22 million per year (roughly $423,000 per week) from his endorsement deals with Arizona Creme soda, Icy Hot, Gold Bond, Buick, Zales, and at least a half dozen additional corporate sponsors. He is also a studio analyst for TNT. In Shaq's own words, "It is not about how much money you make. The question is are you educated enough to KEEP it."

Chapter 1 – Consumers

 Consumers decide what is for sale and how much it costs.  You decide how to spend your money based on:  Values  Goals  Opportunity Cost  Do Semester Project Chapter 1

 Rational Buying Decision  5 Step Decision Making Process  Specify  Search  Sift  Select  Study

 Each year, thousands of consumers are victims of fraud.  Steps for Figuring Percent  When given a number that represents the whole  EX: 1500 students  And given the percent that the situation applies to  EX: 12% are taking Band  Multiply the whole by the percent using one of two methods  1500 X 12% = 180 students  1500 X.12 = 180 students  Always round appropriately and check the rational likelihood of your answer

 Remember that if every one/item is accounted for then the answer will be 100%  People say “I gave 110%” but that is mathematically incorrect if every bit of effort is accounted for then they gave 100%.  So how can I say 115% of the student body took a class in the Business Department?

 Before spending money, you may want to ask yourself if the item you are considering is worth the number of hours you must work to pay for it.  Cost in Work Hours = Total Cost / Pay Rate Per Hour  EX: If you want to buy a puppy for $800 and you make $15 per hour  Cost in Work Hours = $800 / $15  hours you will have to work to buy that puppy  Hint: there are 40 hours in an average full time work week

 Another way to evaluate choices is to consider the length of time you can use a product or enjoy an event or service.  Cost Per Hour = Total Cost / Total Hours of Use  EX: Cable TV will cost me $85 a month and $15 a month for a HBO. I watch an average of two hours of TV a night.  2 hours of TV a night for a month (30 days) is 2 X 30 = 60  Cost Per Hour = $100 / 60  I am paying $1.67 per hour of TV watching  Fun Fact: According to NY Daily News ( Americans watch an average of 5 hours of TV a day.

 In each example the place value represents the #9  9 = ones  90 = tens  900 = hundreds  9,000 = thousands  90,000 = ten thousands  900,000 = hundred thousands  9,000,000 = millions

 Rules of Rounding:  If the number following the place value to be rounded to is 5 or above then the place value is rounded up  If the number following the place value to be rounding is 4 or below then the place value stays the same  EX: Round to the nearest hundred  475 = 500  435 = 400

 4 Types of Economies/Economic Systems  Traditional  Command  Market  Mixed  Law of Supply and Demand  Supply is producer side  Demand is consumer side  Equilibrium is the intersection of supply and demand

 Making Decisions in a Market/Mixed Economy  Information  Prices  Profit  EX: A business pays a sales person 25% commission on sales. The sales person sells $3,000 worth of product. The business pays the sales person $750 and keeps $$2,250 which is their profit  Benefits of Competition

 Consumers in Society  Our choices affect others  Other’s choices affect us  Government plays a role in protecting consumers  Using Natural Resources  Products that use up natural resources  Water  Forest Products  The Environment  Disposal of Waste  Business Responsibility Business Responsibility

 Deceptive Ads Versus Puffery  Puffery or exaggeration is legal  Deception is not legal  Use the Decision Making Process to avoid being tricked into making a bad purchase  Types of Advertising  Refer to your Advertising Assignment