5 Things I Learned In My First Semester Of Business School

I never imagined attending business school as a high schooler. I rarely took courses in business, joined clubs, or negotiated with others. But after an interesting turn of events, I’m sitting here, finishing up my first semester of business school. Other than learning about accounting and the difference between equity and debt financing, here are some other fascinating academic lessons I learned in business school, which you can apply to your everyday life: 

1. There’s a concept explaining why you get tired of your favorite song.

This concept is called “marginal utility.” It’s an economics concept that states that the more times you consume a good, the less you become satisfied with it. For example, let’s say you have a favorite song. The first time you listen to it, you’ll definitely be surprised, and it may get stuck in your head. But if you listen to it too much, you’ll become tired of it. And eventually, your total utility level will start dropping. 

2. There’s always an opportunity cost.

Your decision to go to business school often comes with an opportunity cost. You may ask what it is. Well, it’s basically the next best alternative you could’ve chosen. So, let’s say you purchased a Starbucks coffee for your lecture. While sipping it, you may have thought you should’ve spent your money on a cookie instead. So, the cookie is the opportunity cost for the coffee you purchased. 

3. Not every contract has to be written down.

I learned this in my business law class. Although we may think contracts are written documents, they occur much more in our lives. The bus ticket you purchase is a contract, and the laptop you bought for school is also a contract. As long as there is an intention, a ‘meeting of the minds,’ and consideration, the elements of a contract are satisfied.

4. Knowing ethics is very important in terms of conducting yourself.

Ethics can show in our personal and professional lives. There are many types of ethics to consider in the workplace. For example, is it right for a manager to terminate an employee just because of a disagreement? Should the supervisor give the employee another chance? These are all questions you will ask yourself in your business course. 

5. Your credit card is a debt, not an asset. 

Most people are excited to get their first credit card. But it’s important to understand that a credit card is not an asset — it’s a debt. In businesses, purchases on credit cards are recorded as “account payables” under the liabilities section. Therefore, whenever you purchase a product using a credit card, you don’t necessarily own it until you pay off the credit card. 

I never thought of how business applies to my personal life. But the more I go through the curriculum, the more I learn how important it is to conduct yourself professionally. Moreover, I learned the importance of risk management and the law. Business has taught me how to make decisions better in real life and what to be aware of in the future. So, even if I don’t end up working in the industry, I know I’m learning good life skills.

Featured image via Peter Olexa on Pexels