Lesson Plan

• Describe the main external sources of finance and classify them as equity, debt or non‑repayable.
• Compare the advantages and disadvantages of each source to determine suitability for different business situations.
• Analyse the cost implications (interest, dividends, fees) associated with each source.
• Apply a decision‑making framework to select the most appropriate external finance option for a given case study.
• Evaluate how external finance choices affect business control and cash flow.

• Projector and laptop for slide presentation
• Whiteboard and markers
• Printed handout summarising each external finance source
• Case‑study worksheets for group work
• Calculators
• Internet access for a brief crowdfunding demo

Begin with a quick poll: “If you were starting a new business, where would you look for money?” Connect responses to prior knowledge of internal finance. Explain that today’s success criteria are to identify, compare and justify the use of external finance sources.

1. Do‑now (5') – short quiz on internal vs. external finance to activate prior learning.
2. Teacher input (10') – slide deck outlining each external source, key features and cost types.
3. Guided practice (15') – in pairs, complete a comparison table (advantages/disadvantages) using the handout.
4. Case‑study activity (15') – groups receive a business scenario and decide the best external finance option, justifying their choice.
5. Whole‑class debrief (10') – each group presents; teacher highlights common misconceptions.
6. Exit ticket (5') – students write one finance source they would avoid and why.

Recap the key criteria for selecting external finance and how each source impacts cost, control and cash flow. Collect exit tickets to gauge understanding, and assign homework: research a real‑world example of a company that used crowdfunding and prepare a brief summary.