This instructor guide for a unit on business operations in the PACE (Program for Acquiring Competence in Entrepreneurship) curriculum includes the full text of the student module and lesson plans, instructional suggestions, and other teacher resources. The competencies that are incorporated into this module are at Level 1 of learning--understanding the creation and operation of a business. Included in the instructor's guide are the following: unit objectives, guidelines for using PACE, lists of teaching suggestions for each unit objective/subobjective, model assessment responses, and overview of the three levels of the PACE program. The student module includes the following: specific objectives, questions supporting the objectives, complete content in the form of answers to the questions, case studies, individual activities, group activities, discussion questions, assessment questions, and list of four references. Model assessment responses are provided in the instructor materials. These five objectives are addressed: define operations for a small business; identify the factors that affect purchasing; explain the importance of inventory control; identify the procedures to be followed in shipping and receiving; and identify the considerations in production and packaging. (YLB)