Economics 101 - Why Are They In Business Anyway?

PROFIT

=

REVENUE

-

COSTS

What Businesses Strive For

 

Money Paid for Product or Service

 

Expense of Doing Business

$$$

 

Tuition & Fees

 

Salaries & Benefits

$$$

 

Books and Supplies

 

Infrastructure - Rent/Own & Maintain

$$$

 

Parking Fees

 

Supplies & Equipment

$$$

 

School Logo Items

 

Insurance & Legal

$$$

 

 

Marketing

ANY FOR-PROFIT BUSINESS GOAL IS TO INCREASE PROFIT

To do this, the business must Increase Revenue and Decrease Costs

Important Questions for Consumers and Taxpayers

What are cohort attrition rates?

How high is faculty turnover?

How do students who do not complete the program repay federally funded student loans?

Who ultimately pays for defaulted loans?

Why are corporate profits so high and how does this compare to default student loan rates?

If misdeeds are brought to the attention of administrators, how is this handled and who, if anyone, is punished?

WHO IS BEING SERVED - STUDENTS OR CORPORATIONS?