Entrepreneurship · Lesson Plan

Business Expenses: Licenses, Locations, and Patents

Students are often surprised by the real costs of starting a business. In this MoneyInstructor-nomics lesson, they name their business and pay for a license, sign a rental agreement for classroom space, weigh whether to buy a patent to protect their product, and learn that taxes are owed on profits — then adjust their pricing to cover it. It bridges the prototype and focus-group/pricing lessons.

Grades 3–8 Lesson Plan 45–60 minutes Free Lesson Plan Lesson & Activity: Full Membership

Business expenses, licenses, and patents lesson illustration

For Teachers

Lesson at a glance

Topic: Classroom Economy
Grade Level: Grades 3–8
Resource Type: Lesson + Worksheet
Estimated Time: 45–60 minutes
Format: Lesson + activity
Materials: Printable lesson, activity sheet, pencils

What Students Learn

Learning objectives

Name a business and pay for a business license
Sign a rental agreement for business space
Explain what protection a patent offers
Recognize that taxes are owed on business profits
Adjust pricing to cover expenses and taxes

Materials

What you’ll need

Printed lesson and activity (one per student)
Play money
Pencils

Key Terms

Vocabulary

Business license: Official permission to operate a business, usually for a fee.
Rent: Payment for using a space or location.
Patent: Legal protection that stops others from copying an invention.
Tax: A required payment to the government, including on profits.
Partnership: Two or more people sharing ownership of a business.
Expense: A cost of running a business.

For Teachers

Lesson plan

Estimated time: one 45–60 minute class period.

Lesson sequence

Name & license (12 min). Students name their business and pay for a license.
Rent & patents (15 min). Sign a rental agreement; decide whether to buy a patent.
Taxes (10 min). Learn that profits are taxed and why.
Adjust pricing (11 min). Students update prices to cover expenses and taxes.

Assessment

Assess whether students accounted for license, rent, patent, and tax costs in their adjusted pricing.

Discussion

Discussion questions

What expenses surprised you about starting a business?
Why does a business need a license?
What protection does a patent offer?
Why must a business pay taxes on profits?
How should expenses change your prices?

Printable Lesson & Activity