March 30 2015 Standard SS8E3 The student will evaluate the influence of Georgias economic growth and development Standard SS8E3 a Define profit and describe how profit is an incentive for entrepreneurs ID: 672329
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Slide1
Business and Revenue in Georgia
March
30, 2015
Standard: SS8E3
The student will evaluate the influence of Georgia’s economic growth and development.Slide2
Standard: SS8E3
a. Define profit and describe how profit is
an incentive for entrepreneurs.
b. Explain how entrepreneurs take risks to
develop new goods and services to start
a business.Slide3
Entrepreneurs
Georgia is home to many entrepreneurs who have developed many nationally known businesses
An
entrepreneur
is a person in a market economy who takes a risk and opens a business
They are willing to risk their limited resources to produce these goods and services in hopes of earning a profit
Profit
is the amount left after all production costs have been subtracted
Many businesses suffer losses and can fail, so this is a very risky thing for an entrepreneur to do because they can lose their moneySlide4
Entrepreneurs in Georgia
Georgia entrepreneurs include:
John Pemberton,
Asa
Candler, and Robert Woodruff: Coca-Cola
C.E.
Woolman
: Delta Airlines
Owen Cheatham: Georgia-Pacific
Bernie Marcus and Arthur Blank: Home Depot
Ted Turner: CNN
Alonzo Herndon: Atlanta Life Insurance
Truett
Cathy: Chick-
fil
-ASlide5
Standard: SS8E3
Evaluate the importance of entrepreneurs
in Georgia who developed such enterprises
as Coca-Cola, Delta Airlines, Georgia-Pacific,
and Home Depot.Slide6
Coca-Cola Beginnings
First developed in the mid-1800s by “Doc” John Pemberton, Coca-Cola was originally called French Wine Cola and contained a high amount of alcohol
When the temperance movement swept through Georgia, Doc Pemberton changed the formula to remove the alcohol and named it after its’ two main ingredients – the coca plant and the kola nut
It was a syrup, when mixed with water, that was used to treat headaches and sold for 25 cents a bottleSlide7
Coca-Cola Grows
One day, a customer at a drugstore bought some syrup and asked to have it mixed up with water in the store so he could drink it right away
The pharmacy worker mixed it with soda water instead of tap water and the customer liked it better
Within weeks, other drugstores began mixing it that way and production grew to over 1000 gallons a yearSlide8
Asa Candler
In the late 1800s,
Asa
Candler, a pharmacist, bought Coca-Cola’s stock from Pemberton
In 1892, Candler formed the Coca-Cola company, which gained him much wealth because of the popularity of the drink
In 1919, Candler sold the company to Ernest Woodruff for $25 millionSlide9
Robert Woodruff
In 1923, Robert, Ernest Woodruff’s son, became president of the company
He turned the company into a multi-billion dollar business with clever marketing and advertisements
In WWII, he built bottling plants in Europe to give American soldiers a taste of home while at war
Europeans also began drinking Coca-Cola and its popularity spread around the world
Today, Coca-Cola products are enjoyed by over 470 million people worldwide every daySlide10
Delta Airlines Beginnings
In 1924, a crop dusting company, Huff Daland Dusters, was formed in Macon by C.E. Woolman
In 1925, its headquarters was moved to Monroe, LA where a group of businessmen bought it and renamed it Delta Air Service
It continued its crop dusting service but also bought 5 passenger planes and began carrying passengers in 1929 between Dallas, TX and Jackson, MS
In 1934, it started a mail route to Atlanta, and moved its headquarters to Atlanta in 1941Slide11
Delta Grows
During WWII, Delta contributed to the war effort by training pilots and modifying some of its planes for use by the military
In 1945, the name changed to Delta Air Lines
In 1953, it merged with Chicago and Southern Airlines, then Northeast Airlines in 1972 and Western Airlines in 1987
It expanded its routes and in the 1990s, added international flightsSlide12
Delta Today
Today, Delta has contributed to the growth of Atlanta by offering a wide range of flight options to business flyers and vacation flyers
It merged with Northwest Airlines in 2008 to form one of the largest airlines in the U.S.
It offers service to more destinations than any other global airlineSlide13
Georgia-Pacific Beginnings
Founded in 1927 by Owen Cheatham as the Georgia Hardwood Lumber Co. in Augusta, GA
Over the years, the company expanded and changed its name to Georgia-Pacific in 1956
It moved its headquarters for a while to Portland, OR, but moved to Atlanta in 1982Slide14
Georgia-Pacific Today
Today, it manufactures a number of familiar products to consumers – Brawny, Dixie cups, and Quilted Northern
It employs about 50,000 people around the world and has several facilities in GeorgiaSlide15
Home Depot Beginnings
The first Home Depot stores were opened by Bernie Marcus and Arthur Blank in Atlanta in 1979
Within the first 5 years, stores opened in Florida, Louisiana, Texas, and Alabama
Stores originally stocked about 25,000 productsSlide16
Home Depot Today
Today, the stores stock about 40,000 products and have 2000 stores around North America and China
Marcus and Blank, though retired from Home Depot, continue to be active in the Atlanta area
Both provide financial support to many charities, Blank owns the Falcons, and Marcus donated $200 million to build the Georgia AquariumSlide17
Standard: SS8E4
The student will identify revenue sources & services provided by state & local governments
.
Trace sources of state revenue such as sales
taxes, federal grants, personal income taxes,
and property taxes.Slide18
State Government Revenue
All of these businesses create revenues (income) for Georgia by charging sales tax on their products and paying income tax on their profits
Taxes are the major source of revenue for the state, but federal funds and special fees also provide revenueSlide19
Where do revenues come from?
About 90% of Georgia’s revenue comes from taxes (personal income tax, sales tax, gas tax, cigarette and alcohol tax, property tax)
Federal funds come from the U.S. government and special fees come from different state agenciesSlide20
Expenditures and the Budget
Each year, a plan for spending the revenues (expenditures) is created
An original budget is passed by the General Assembly during their yearly session to cover a fiscal year (a budgetary spending year)
An amended budget is often needed later in the fiscal year to keep the budget balanced
Sometimes, a supplementary budget is used to change the original budget when new spending is needed or extra funds are availableSlide21
Local Government Revenue
Local governments also collect most of their revenues from taxes
Property taxes, sales taxes, and cigarette and alcohol taxes contribute
Fees such as business licenses and car tags also contributeSlide22
Standard: SS8E4
The student will identify revenue sources & services provided by state & local governments.
Explain the distribution of state revenue
to provide services.Slide23
Distribution of Revenues
The state and local governments provide services to the citizens paid for with the revenues
At the state level, the largest expenditure is for education
Other expenditures include salary for government employees, public safety, and transportation
Local governments also make expenditures for education, plus police and fire protection, libraries, water service, and parksSlide24
Scarcity
All governments face issues of scarcity (when our needs are unlimited and revenues are limited)
Lawmakers often have to choose which services they can provide with limited revenues
In times like this, the most essential expenditures are essential services to the citizens like education and health servicesSlide25
Questions…
1) What is an entrepreneur?
2) What is profit?
3) Why is being an entrepreneur risky?
4) Who developed the original Coca-Cola syrup?
5) What is Coca-Cola named after?
6) Who formed the Coca-Cola Company in 1892?
7) How did Robert Woodruff turn Coca-Cola into a multi-billion dollar company?
8) Where and how did Delta Airlines start?
9) When did Delta’s headquarters move to Atlanta?
10) How did Delta contribute to the WWII effort?
11) When did Delta add international flights?
12) How did Delta contribute to the growth of Atlanta?
13) How did Georgia-Pacific start?
14) What products does Georgia-Pacific make?
15) Who opened the first Home Depot stores?
16) How do Marcus and Blank contribute to the city of Atlanta? Slide26
More Questions…
17) What is revenue?
18) What is the major source of state revenue?
19) What are other sources of state revenue?
20) What are expenditures?
21) What is a fiscal year?
22) What are 3 types of budgets and what are they for?
23) Where do local governments get their revenues?
24) What is the largest expenditure at the state level?
25) What do local governments make expenditures for?
26) What is scarcity?
27) What are the essential expenditures in times of scarcity?