Lesson Plan

• Describe the concept of limited liability and how it protects shareholders.
• Compare limited liability with unlimited liability regarding risk and financing.
• Explain how limited liability operates in practice using a real‑world example.
• Evaluate the advantages and disadvantages of limited liability for businesses.

• Projector and screen
• Whiteboard and markers
• Printed handout with key features and comparison table
• Worksheet containing the Emily case study
• Sticky notes for poll and exit ticket
• Calculator (optional)

Start with a quick poll: “Would you invest in a business if your personal assets could be seized?” Discuss responses to activate prior knowledge of business risk. Review the previous lesson on business structures and share capital. Explain that by the end of the lesson students will be able to define limited liability, compare it with unlimited liability, and identify its impact on investors.

1. Do‑now (5') – Students write their poll answer on sticky notes and share briefly.
2. Mini‑lecture (10') – Define limited liability, display the flowchart diagram, and highlight key features.
3. Guided analysis (12') – Examine the comparison table; pairs complete a Venn diagram of limited vs. unlimited liability.
4. Case study (10') – Work through Emily’s TechSolutions Ltd example; calculate shareholder loss and discuss creditor claims.
5. Advantages/Disadvantages debate (8') – Groups list pros and cons on the board and justify their choices.
6. Check for understanding (5') – Short quiz (Kahoot or hand‑out) with immediate feedback.
7. Exit ticket (5') – Write one sentence defining limited liability and one real‑world benefit.

Summarise how limited liability shields personal assets while enabling companies to raise capital. Collect exit tickets to gauge understanding and assign a homework task: research a local limited company and report its share capital and how limited liability might affect its owners.