Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Business
Lesson Topic: external sources of finance: share capital, debentures, new partners, venture capital, bank overdrafts, leasing, hire purchase, bank loans, mortgages, debt factoring, trade credit, micro‑finance, crowd funding and government grants
Learning Objective/s:
  • Describe key features, advantages and disadvantages of major external finance sources.
  • Compare the suitability of different external finance options based on amount, term, control and cost.
  • Apply a decision‑making framework to select an appropriate external finance for a given business scenario.
  • Evaluate the impact of external finance on business risk and ownership.
Materials Needed:
  • Projector and screen
  • PowerPoint slides summarising each finance source
  • Handout with comparison table
  • Case‑study worksheets
  • Whiteboard and markers
  • Sticky notes for group brainstorming
 Introduction:
Start with a quick poll: “If you needed £50,000 today, where would you turn?” to activate prior knowledge of funding routes. Briefly recap internal finance and explain that today we will explore the full range of external options. Students will be able to identify the most appropriate source using a decision‑flowchart by the end of the lesson.
Lesson Structure:
  1. Do‑now (5’) – Students list any external finance they have heard of on sticky notes; share and categorize.
  2. Mini‑lecture (15’) – Present overview of the 14 external sources using slides, highlighting key pros/cons.
  3. Guided comparison activity (10’) – In pairs, complete a comparison matrix for two assigned sources.
  4. Decision‑flowchart modelling (12’) – Whole class builds a flowchart on the board, discussing selection criteria.
  5. Case‑study application (15’) – Groups analyse a short business scenario and recommend the optimal external finance, justifying their choice.
  6. Check for understanding (5’) – Quick quiz (Kahoot) on advantages/disadvantages.
  7. Reflection & exit ticket (3’) – Students write one takeaway and one question on a post‑it.
Conclusion:
Summarise how each external source matches different business needs and reinforce the decision‑making framework. Collect exit tickets to gauge understanding, and assign homework: research a real company that recently used one of the discussed finance sources and prepare a brief summary.