Business finance: needs and sources IGCSE Business Studies

Lesson Plan;
SUBJECT: Business Studies. TOPIC: Business finance: needs and sources.
LESSON OBJECTIVE: are shared with the student for awareness and expectation of lesson outcome.
You may need to rejig it for more than a lesson period.
Content;
5.1.1 Identify the need for business finance: • The main reasons why businesses need finance,
e.g. start-up capital, capital for expansion and additional working capital
• Understand the difference between short-term and long-term finance needs.
5.1.2 The main sources of finance: • Internal sources and external sources with examples
• Short-term and long-term sources with examples, e.g. overdraft for short-term finance and debt or equity for long-term finance • Importance of alternative sources of capital, e.g. micro-finance, crowd-funding • The main factors considered in making the financial choice, e.g. size and legal form of business, amount required, length of time, existing loans • Recommend and justify appropriate source(s) of finance in given circumstances.