Lesson Plan

• Evaluate the suitability of various finance sources for a specific business need using defined criteria.
• Apply a weighted scoring model to compare internal and external finance options.
• Justify the selected finance source with quantitative cost analysis and qualitative considerations of control and risk.
• Analyse the impact of the chosen finance on key financial ratios and cash‑flow forecasts.

• Projector and screen
• Printed comparative finance table handout
• Calculator for each student
• Whiteboard and markers
• Case‑study worksheet (CNC machine scenario)
• Scoring rubric sheets

Begin with a quick poll asking students which finance source they think is cheapest for a start‑up, linking to prior knowledge of internal vs external finance. Highlight that today they will learn how to match finance sources to real business situations. Success will be measured by their ability to select and justify the most appropriate source using a structured criteria set.

1. Do‑now (5') – short quiz on internal vs external finance sources.
2. Mini‑lecture (10') – present the six evaluation criteria and the decision‑making flowchart.
3. Guided analysis (15') – walk through the comparative table, discussing cost, control, risk, availability, flexibility and ratio impact.
4. Case‑study activity (20') – groups use the scoring rubric to evaluate the CNC‑machine scenario and decide on a finance mix.
5. Group presentations (10') – each group shares its recommendation and justification.
6. Teacher summary & check for understanding (5') – Q&A, exit‑ticket question on one key criterion.

Recap the importance of balancing cost, control, risk and flexibility when choosing finance. Students complete an exit ticket stating the single most critical criterion for their chosen source. For homework, they research a recent real‑world finance decision by a company and prepare a brief justification using the learned criteria.