Lesson Plan

• Describe the main internal and external sources of finance and their key characteristics.
• Compare the cost, control impact and risk associated with different finance options.
• Apply a decision‑making process to select and justify the most suitable source of finance for a given business scenario.

• Projector and screen
• Printed comparison‑table handout
• Case‑study worksheets (TrendWear scenario)
• Calculator or spreadsheet software
• Whiteboard and markers

Begin with a rapid‑fire quiz to recall common sources of finance, linking to prior lessons on cash flow. Highlight that today’s focus is on matching finance to business needs. State that success will be measured by each group’s ability to justify a chosen source using the checklist.

1. Do‑now (5') – Kahoot quiz on internal vs external finance.
2. Mini‑lecture (10') – Overview of key sources, advantages and disadvantages.
3. Guided analysis (12') – Walk through the comparison table, emphasising cost, control and risk.
4. Case‑study activity (15') – Groups assess the TrendWear scenario, calculate options and select a source.
5. Justification writing (8') – Each group drafts a brief justification using the checklist.
6. Peer review (5') – Groups exchange justifications and provide feedback.
7. Plenary (5') – Recap the decision‑making steps and answer final questions.

Summarise the importance of aligning finance choice with purpose, cost and control considerations. Students complete an exit ticket stating the most suitable source for a new scenario. For homework, they research a real‑world company’s recent financing decision and prepare a short justification.