What is Financial Information?
1470 Introduction to Finance
TOPIC OR UNIT OF STUDY
Financial Information Management Fundamentals
CONTENT STANDARD(S) AND OBJECTIVE(S)

Describe the need for financial information
(Activity 1 & 2)

Explain the nature and scope of the financial-information management function (Activity 1 & 2)

Explain the role of ethics in financial-information management
(Activity 1 & 2)

Describe the use of technology in the financial-information management
(Activity 1 & 2)

Explain information that can be obtained from financial statements
(Activity 1 & 2)

Describe information that can be obtained from annual reports
(Activity 1 & 2)

Explain the nature of bonds
(Activity 1 & 2)

Explain the nature of stocks
(Activity 1 & 2)

Describe the nature of mutual funds
(Activity 1 & 2)

Describe sources of securities information
(Activity 1 & 2)

Interpret securities tables
(Activity 1 & 2)
INTRODUCTION
Any new business owner needs to learn about financial information in order to run their business
effectively and profitably. There are terms used by support professionals like lawyers and accountants
that you will need to know about. It’s your business and you cannot trust everyone, so we need to be
aware of the basic concepts. This lesson will cover those concepts.
ESSENTIAL QUESTION
As a new business owner, what are the important points of financial information that you need to be
aware of? How can you use that information in the running of your business to be successful?
INTEGRATION OF ACADEMICS, TECHNOLOGY, ENTREPRENEURSHIP
To complete this project, students will use basic terms and concepts, to complete the following
academic, technology, and entrepreneurship activities:
 Academic activities –website research, critical thinking and writing skills;
 Technology activities – website research, use of movie maker software & video cameras;
 Entrepreneurship activities – building beginning knowledge of business financial information to
help understand its function for beginning entrepreneurs.
STUDENT INVOLVEMENT IN PLANNING PROCESS
Students will be given a brief scenario that they will have to expand on and create a video skit that
demonstrates the topics covered in the worksheet. Students will also be involved in the discussion of
accuracy of each of the videos at the completion of the project.
TASK(S)
 Discover answers to the financial information questions in Activity 1
120 min
 Demonstrate understanding by creating role play video in Activity 2
360 min
RESOURCES
websites: http://www.york.ac.uk/enterprise/cetle/resources/WRCE/ryos/resources/NUFI.pdf
http://www.scoreknox.org/library/financial.htm
http://www.investopedia.com/articles/basics/06/financialreporting.asp#axzz2AWHOL24n
http://highered.mcgrawhill.com/sites/0073526703/student_view0/ebook/chapter1/chbody1/the_importanc
e_of_ethics_in_business.html
http://www.managementstudyguide.com/ethics-and-technology.htm
http://www.dummies.com/how-to/content/reading-an-annual-report.html
http://lawrenceville-ga.patch.com/articles/stocks-bonds-mutual-fundswhats-thedifference
http://www.investing-in-mutual-funds.com/mutual-funds-vs-stocks.html#.UIwk-G-ulGA
http://www.sec.gov/about/whatwedo.shtml
http://www.traderslog.com/stocktables/
http://www.youtube.com/watch?v=TlvnnvU8Ikk
TECHNOLOGY USE
Computers, Word software, Youtube videos, Video cameras, Movie Maker software, and the Internet
EVALUATION
 Activity 1 - Discover answers to the financial information questions
40 pts
 Activity 2 - Demonstrate understanding by creating role play video
50 pts
Total Points
90 pts
Authentic assessments will be evaluated with the rubrics that are located on each activity.
TIMELINE
Block scheduling-6 days, periods-12 days. This does not include time for lecture, textbook readings, and
discussions. Depending on student’s ability, extended time may be needed on some projects.
Day 1
Discover answers to the financial information questions in Activity 1
90 min
Day 2
Continue finding answers to the financial information questions in Activity 1
30 min
Day 3
Split students into groups & choose scenario. Create skits for Activity 2
90 min
Day 4
Students create skits & start filming scenes for Activity 2
90 min
Day 5
Students complete filming & finish role playing skits for Activity 2
90 min
Day 6
Student videos are shown & class discusses accuracy for end of Activity 2
90 min
CONCLUSION
At the conclusion of this study students will understand the important points of financial information
needed by entrepreneurs. They will also understand how can you use that information in the running of
your business to be successful.
Risky Business
To start you own business is risky business in any economy, but in today’s economic environment it can
be especially tricky. This worksheet will help you gain some basic business knowledge to help you
understand what entrepreneurs need to know to effectively run their business.
Use the following websites or any site that you can find to help you answer these questions. Record the
website used to answer each question.
http://www.scoreknox.org/library/financial.htm
http://www.investopedia.com/articles/basics/06/financialreporting.asp#axzz2AWHOL24n
http://www.managementstudyguide.com/ethics-and-technology.htm
http://www.dummies.com/how-to/content/reading-an-annual-report.html
http://lawrenceville-ga.patch.com/articles/stocks-bonds-mutual-fundswhats-the-difference
http://www.sec.gov/about/whatwedo.shtml
http://www.traderslog.com/stocktables/
Question
1. Why do we need financial
information?
2. Who and what needs to be
communicated when it
comes to financial
management?
3. What is the role of ethics in
financial information?
4. How can technology help
with gathering financial
information?
5. What are some technology
examples for financial
information management?
Answer (3 pts each)
Web/Resource (1 pt)
6. What information can you
gain from financial
statements? Give three
examples.
7. What is the difference
between financial
statements and an annual
report?
8. What is the difference
between stocks, bonds, and
mutual funds?
9. Who regulates the sales of
stocks and securities? How
do they minimize risk?
10. What are some key points to
interpreting securities
tables?
Total Points
____ of 40 points
Role Play
Watch the following video to help set the scene for this activity:
http://www.youtube.com/watch?v=TlvnnvU8Ikk
To display student understanding of the answers acquired for the Risky Business activity, students will
create groups of 4-5 students and create a video on one of the scenarios below:
Donut Business
You have started a donut business but do not
understand financial information. You have a
great recipe and good prices, but are not sure why
financial information is needed. You seek the
advice of two friends to see if they can help you.
(Questions 1 & 2)
Captain D’s Restaurant
You are the manager of Captain D’s regional office.
You have just put in place a new accounting
software to manage the financial information. An
employee thinks they may have found a problem
with the deposit recording. (Questions 3, 4, & 50
Billy Bob’s Bingo
This new business just opened 18 months ago and
has been a great weekend entertainment addition
to your hometown. The owner wants to start
opening during the week and doesn’t want to go
back to his investors, so he goes to the local bank
to get a loan. The bank wants to see his
statements, and his financials or annual report. He
doesn’t know the difference or what he should do.
He comes to your accounting office for advice.
(Questions 6 & 7)
Charlie’s Chips
You and your friends formed a potato chip
company that has been a huge success. You are
now planning to expand your business to go with
nationwide distribution and are arguing over how
you plan to finance the growth – stocks or bonds?
You meet to argue your points with the board of
directors. (Questions 8, 9, & 10)
Create a 5-10 minute video on this scenario by using the answers you acquired in the previous activity.
Videos will be reviewed and discussed as a class at the end. Review the grading rubric below for details.
Grading rubric:
Requirements
Participation
Terminology
Accuracy
Business
connection/application
Video creation
7-10 points
4-6 points
All members take an active
role in the project – writing
skit, acting, recording,
creating video
Speech and discussions
during video use
terminology learned and
used in answers
Topics covered during the
video are accurate and
follow the answers given in
activity1
Video skit takes place in a
business environment using
business characters
Video uses several scenes
put together with
transitions, captions, title &
credits, 5-10 min long
Professional & creative
Most members participated,
but one or two students
were in charge of all
activities, others limited
Terminology is thrown into
video, but doesn’t show
understand of term
Some members did not
participate, only a few
members completed all of
the required activities
Minimal terminology used
during the video
Topics covered are
somewhat vague, hard to
show accuracy.
Some inaccuracies are
evident in the coverage of
the topics
Video is directed to
businesses but does not use
business characters.
Video is basically one scene,
but split footage to use
transitions, minimal length.
Some captions. Not always
professional.
Video is not directed to
businesses but still uses the
business examples
Lacks creativity &
professionalism. Footage is
minimally edited & limited
transitions used.
Under 5 min length
Total points
1-3 points
______ of 50 points