| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Business |
| Lesson Topic: business failure as a consequence of lack of finance, including bankruptcy, liquidation and administration |
Learning Objective/s:
- Describe why adequate finance is essential for business operations.
- Explain how insufficient finance can lead to insolvency and its operational and legal consequences.
- Distinguish between bankruptcy, liquidation, and administration, including purpose, initiator, and outcome.
- Calculate and interpret current, quick, and debt‑to‑equity ratios to identify early signs of financial distress.
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Materials Needed:
- Projector and screen for slides/flowchart.
- Whiteboard and markers.
- Handout summarising insolvency procedures and ratio formulas.
- Calculator or spreadsheet software for ratio calculations.
- Sample case‑study worksheets.
- Sticky notes for group brainstorming.
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Introduction:
Begin with a brief news headline about a recent high‑profile company entering administration and ask students what went wrong. Connect this to prior learning on cash flow and the need for working capital. Explain that by the end of the lesson they will be able to identify signs of financial distress and compare the three main insolvency routes.
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Lesson Structure:
- Do‑now (5'): Analyse a short news excerpt on a business failure and list possible financial causes; teacher checks responses.
- Mini‑lecture (10'): Review why finance is essential and the consequences of insufficient finance using slides and a flowchart.
- Interactive activity (12'): In groups, calculate current, quick, and debt‑to‑equity ratios from a provided statement and discuss red flags.
- Procedure comparison (10'): Groups receive case cards (bankruptcy, liquidation, administration) and create a poster outlining purpose, initiator, outcome, and creditor impact; share with class.
- Whole‑class discussion (8'): Teacher synthesises key differences, addresses misconceptions, and links ratio analysis to early rescue options.
- Exit ticket (5'): Students write one actionable step a business could take to avoid insolvency based on today’s learning.
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Conclusion:
Summarise that inadequate finance can trigger operational problems, loss of confidence, and legal insolvency routes. Highlight how ratio analysis provides an early warning system and how each procedure offers a different resolution. Collect exit tickets and assign homework to research a real company that underwent administration and prepare a brief report.
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