• 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, 40 24-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 53.33 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 (

http://www.nydailynews.com/life-style/average-american-watches-5-hours-tv-day-article-1.1711954)

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

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