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LESSON: ARTHUR’S PET
BUSINESS
Lesson Summary
Arthur
really wants his own puppy. So he starts his own "Pet Business" to
make a profit and to prove his responsibility to his parents.
Concept: Profit
Definition: Profit is the difference between
the money people make when they produce and sell a good or service and all
their costs of production.
Comprehension Questions:
Why did
Arthur need a job?
To show responsibility to his parents, to get to
get a puppy, to earn money to repay his sister, D.W.
List his choices of possible
jobs.
Bank teller, car crusher
What did Arthur think of doing that
he knew he would enjoy?
Starting a pet business to care for other
people's pets
What other advantage did running a
Pet Business have for Arthur?
It gave him the opportunity to
practice taking care of pets, increasing the likelihood that his parents
would let him have a pet.
How did Arthur let people know
about (i.e. increase the demand for) his business?
He advertised by
putting up signs.
Identify Arthur's personal costs in
running a business.
His costs were mainly the costs of his time -
his own human resources. He had to work long hours and had a lot of
responsibility. This created a lot of stress and exhaustion in his
life.
What risks were involved in
Arthur's business?
Dangerous pets, losing the pets,
destroying his mother's house.
Was Arthur's business
profitable?
Yes
What did Arthur earn?
He
earned ten dollars and the privilege to have his own puppy.
How did he spend the money he
earned from his business?
He paid back the seven dollars that he
owed his sister.
Are businesses always
successful?
No! Many businesses do not make profits at
all. They actually lose money and eventually have to close
down. There is always risk when you start a business - you never know
for sure if you will make a profit.
Other Concepts: Human
Resources, Supply and
Demand, Entrepreneur | 
