Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: advantages and disadvantages of internal and external sources of finance
Learning Objective/s:
  • Describe internal and external sources of finance and their key characteristics.
  • Analyse the advantages and disadvantages of each source.
  • Compare the suitability of different sources for various business scenarios.
  • Apply decision‑making criteria to select the most appropriate finance for a given case.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Handout summarising sources of finance (incl. comparison table)
  • Case‑study worksheets
  • Sticky notes for group activity
  • Calculator (optional)
 Introduction:
Begin with a quick poll: “If you needed £10,000 today, how would you raise it?” Connect to prior learning on profit and cash flow. Explain that today’s success criteria are to identify internal vs. external finance, list their pros and cons, and justify a finance choice for a scenario.
Lesson Structure:
  1. Do‑now (5') – Students write funding ideas on sticky notes; teacher records responses.
  2. Mini‑lecture (10') – Define internal and external finance using slides and the handout.
  3. Guided analysis (15') – Pairs create a two‑column T‑chart of advantages/disadvantages for each source; teacher circulates.
  4. Case‑study activity (15') – Groups receive a business scenario, use a decision‑making checklist, choose a finance source and justify.
  5. Whole‑class debrief (10') – Groups share decisions; discuss trade‑offs and correct misconceptions.
  6. Quick quiz (5') – Exit ticket with three short questions on key concepts.
Conclusion:
Summarise that internal finance is generally cheaper and retains control, whereas external finance can provide larger sums but adds cost and potential loss of control. For the exit ticket, students write one advantage and one disadvantage of the source they selected. Homework: research a real company’s recent financing and prepare a brief report.