Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: how businesses may respond to changes in taxes and interest rates
Learning Objective/s:
  • Describe how changes in corporation tax and VAT influence business pricing and cost decisions.
  • Explain the impact of rising and falling interest rates on borrowing, investment and cash‑flow management.
  • Analyse a given scenario and propose appropriate strategic responses to a tax or interest‑rate change.
  • Evaluate the advantages and disadvantages of different response strategies (e.g., price‑pass‑through, offshoring, refinancing).
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed case‑study handouts (tax change & interest‑rate change scenarios)
  • Worksheet with summary table and calculation task
  • Calculators
  • Exit‑ticket slips
 Introduction:

Begin with a short news clip about a recent tax hike in a major economy to hook interest. Ask students what they already know about how taxes and interest rates affect business decisions, linking to prior lessons on costs and financing. Outline today’s success criteria: students will be able to explain impacts and suggest realistic business responses.
Lesson Structure:
  1. Do‑now (5'): Quick quiz on key tax and interest‑rate terms.
  2. Mini‑lecture (10'): Overview of tax types and typical business reactions to tax increases/decreases.
  3. Group activity (12'): Analyse a case where corporation tax rises; each group creates a response plan (pricing, cost‑cutting, offshoring, etc.).
  4. Whole‑class debrief (8'): Groups present plans; teacher highlights strengths and gaps.
  5. Mini‑lecture (10'): Effects of interest‑rate changes on borrowing and investment.
  6. Paired activity (12'): Using a second case (interest‑rate fall), students outline financing and expansion strategies.
  7. Summary & exit ticket (8'): Recap key points; students write one action a business could take for a tax rise and one for an interest‑rate fall.
Conclusion:

Summarise how businesses balance profitability and competitiveness when taxes or interest rates shift. Collect exit tickets to gauge understanding and assign a short homework: calculate the profit impact of a 5% tax increase on a given profit figure and suggest two strategic responses.