(T) Explain why businesses need finance. Then, (T) Ask for examples of finance. (ALL) Students give their ideas. (T) Explain sources of finance. Give relevant examples to demonstrate the different types of finance and their uses. a business is operating, it may be able to use its profits to invest back into the business. Doing so means that there’s “Once potential for even greater profits to be made in the future.” amount of profit to be invested back into the business or in new businesses will depend on how much profit the owners “The – – want to keep for themselves against how much they want the business to expand.” Task 2: Divide students into groups of 4 (T) Explain that in their groups they are going to recreate the TV show Dragon’s Den. Ask them to imagine that they have spotted an excellent location and they want to set up a new car dealership in their local area. 2 group members will be the entrepreneurs (who want the investment) 2 group members will be the dragons (investors). Each group must prepare a short presentation for the (the potential investors) using the following ‘dragons’ details and scenario: THE ENTREPRENEURS will: Identify appropriate sources of finance to set up their business. Explain clearly why these sources of finance are appropriate. Give evidence to show they have considered all the pros /cons. Explain why they have rejected other sources of finance. They ALSO need to impress the dragons by showing they have done their homework! Remind students: They have looked at the IMI Autocity and other manufacturers’ websites and so are aware of the different industry opportunities. Useful information to discuss if appropriate for students. bank overdraft is a short-term loan and is beneficial for stopgaps in cash flow.” “A bank loan would be a better choice for any long-term problem as it will have a lower interest rate” “A that businesses are more likely to lease than to hire purchase.” “Consider - and the possible negative implications to a balance (assets).” “Depreciation What is the difference between leasing and hire purchase? What type of customers prefer to lease? Owner’s investment Sale of assets Retained profits Trade credit Factoring Lease Hire purchase Grants
(T) Explain why businesses need finance. Then, (T) Ask for examples of finance. (ALL) Students give their ideas. (T) Explain sources of finance. Give relevant examples to demonstrate the different types of finance and their uses. “Once a business is operating, it may be able to use its profits to invest back into the business. Doing so means that there’s potential for even greater profits to be made in the future.” “The amount of profit to be invested back into the business – or in new businesses – will depend on how much profit the owners want to keep for themselves against how much they want the business to expand.” Task 2: Divide students into groups of 4 (T) Explain that in their groups they are going to recreate the TV show Dragon’s Den. Ask them to imagine that they have spotted an excellent location and they want to set up a new car dealership in their local area. 2 group members will be the entrepreneurs (who want the investment) 2 group members will be the dragons (investors). Each group must prepare a short presentation for the ‘dragons’ (the potential investors) using the following details and scenario: THE ENTREPRENEURS will: Identify appropriate sources of finance to set up their business. Explain clearly why these sources of finance are appropriate. Give evidence to show they have considered all the pros /cons. Explain why they have rejected other sources of finance. They ALSO need to impress the dragons by showing they have done their homework! Remind students: They have looked at the IMI Autocity and other manufacturers’ websites and so are aware of the different industry opportunities. Useful information to discuss if appropriate for students. “A bank overdraft is a short-term loan and is beneficial for stopgaps in cash flow.” “A bank loan would be a better choice for any long-term problem as it will have a lower interest rate” “Consider that businesses are more likely to lease than to hire purchase.” “Depreciation - and the possible negative implications to a balance (assets).” What is the difference between leasing and hire purchase? What type of customers prefer to lease? Owner’s investment Sale of assets Retained profits Trade credit Factoring Lease Hire purchase Grants
imi-lesson-plans_-business-studies_teacherspack-3.docx