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The Big Picture A financially literate person understands that the corporate world is full of titles, duties, roles, responsibilities, and formalities. Innovation team members formalize their relationship by joining together as a business entity. Forming a corporation enables them to clearly establish members’ duties, responsibilities, and rights. Functioning as a corporation makes it easier to meet capital needs and manage risk. Startups can use stock as a means of growth, to attract investment, good employees, and pay for business operations. Corporations issue shares to members, which represent a percentage of equity/ownership in the company. Shareholders elect a board of directors, who appoint officers and executives. Officers and directors are responsible for running the corporation, and have duties and responsibilities unique to their position. Directors hold board meetings in parliamentary style. Let’s Practice! Select from the following practice activities: Let's Practice: How to Run a Meeting in Style (In class activity – allow 20-25 minutes) SLIDE 12M PRODUCT PREVIEW Let's Practice: Innovation Team Project Part 2 – Forming a Corporation Exploring 21st Century Skills and Issues: Are You CEO Material? Ponder and Predict What would happen to commerce if great ideas never got any further than their innovator or inventor’s brains because of the costs of R&D or marketing? How does a startup find the money to fund development of a new and promising product? You have learned that capitalism inspires all sorts of ways to make a profit. In fact, there are businesses in the business of funding innovation. Who are these mysterious risk takers, and what do they get in return? Write your predictions here, and in the next lesson find out if you’re right! Assign • Blog, debate, discuss: On a scale of 1-5 (5 being “Call Me Chief’ and 1 being “I can’t even spell CEO”) are you CEO material? What leadership qualities do you have that would make you a good CEO – or which qualities do you lack? SLIDE 12N
• To prepare for the next lesson: read Chapter 13 of the student workbook. • Watch business or financial news at least 15 minutes per day: Bloomberg West (www.bloomberg.com/video/bloomberg-west)
The Street Business News (www.thestreet.com) Reuters (www.reuters.com/video/technology) • Each week compare and contrast tweets from students' selected financial journalists. Compare journalists' opinions about events and stories.
225 THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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