MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Sources of Finance Key question: Where does a potential business get finance from to start operating? Ground Rules 1)Do not interrupt teaching. 2)Put your hand up if you want to ask a question. 3)Have respect and do not interrupt others who are answering a question or making their point. Ground Rules 1)Do not interrupt teaching. 2)Put your hand up if you want to ask a question. 3)Have respect and do not interrupt others who are answering a question or making their point.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Information Why does a business need finance? Start up a business e.g. pay for premises, new equipment and advertising. Run the business e.g. having enough cash to pay staff wages and suppliers on time. Expand the business e.g. having funds to pay for a new branch in a different area.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Starter Activity How much do you know? 1)Write your name at the top of the A4 sheet? 2)You have 30 seconds to think up some potential sources of finance to start a business? 3)You have 1 minute to share ideas with a partner. 4)Feedback to Mr Lewis. Think, pair, share.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Terms – a teaching challenge… 1)Choose a source of finance. 2)Ask another student a question. 3)Make an assessment 3)Make an assessment, do they know the answer? 4)If they do not know the answer, teach them/tell them the answer. 5)Swap your source of finance and then move on to another person and repeat. Teach me, tell me.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Bank Overdraft What is a Bank Overdraft? Suggest an advantage? Where a business or person is allowed to take out more than there is in the bank account up to an agreed limit. Quick to arrange, flexible and cheaper than a loan

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Bank Overdraft What is a Bank Overdraft? Suggest a disadvantage? Where a business or person is allowed to take out more than there is in the bank account up to an agreed limit. A bank will make a charge if more is taken out than is allowed and may request it back at any time.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Grants What is a Grant? Suggest an advantage? Comes from government or charities to help a business get started, especially in areas of high unemployment. A way of gaining money which will normally, never have to be paid back

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Grants What is a Grant? Suggest a disadvantage? Comes from the government or charities to help a business get started, especially in areas of high unemployment. To apply for the grant involves filling in paperwork which can very time consuming.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Loan What is a Loan? Suggest an advantage? An amount of money that you could get from either a bank, family or friends which is paid back over an agreed length of time with interest. You are guaranteed a specific amount of money over an agreed period of time.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Loan What is a Loan? Suggest a disadvantage? An amount of money that you could get from either a bank, family or friends which is paid back over an agreed length of time with interest. A business may not be able to keep up with repayments if their customers do not pay them.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Own Funds What does own funds mean? Suggest an advantage? An amount of money that the owner of the business would invest themselves from their own savings. Using your own funds means that you do not have to pay interest unlike with a loan.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Own Funds What does own funds mean? Suggest a disadvantage? An amount of money that the owner of the business would invest themselves from their own savings. Using your own funds could mean that you lose all your savings if the business fails.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Debentures What is a debenture? Suggest an advantage? A form of loan where an organisation may sell a part of the business (share) for a fixed period of time. The business will pay out a set amount of money each month, so can easily be planned for.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Debentures What is a debenture? Suggest a disadvantage? A form of loan where an organisation may sell a part of the business (share) for a fixed period of time. The regular payments have to be made even if the business is not making any money.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Mortgage What is a mortgage? Suggest an advantage? A special type of loan for buying property where monthly payments, to repay the loan, are spread over a number of years. A business will get ownership of their business premises.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Mortgage What is a mortgage? Suggest a disadvantage? A special type of loan for buying property where monthly payments, to repay the loan, are spread over a number of years. Usually a deposit will have to be put towards the mortgage which is money that could have been used for other things.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Leasing What is a leasing? Suggest an advantage? Where monthly payments are made for the use of the equipment. Leased equipment is rented and not owned by the business. Regular payments are spread out over several years and are easy to plan for. There is no large one off payment at the start.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Leasing What is a leasing? Suggest a disadvantage? Where monthly payments are made for the use of the equipment. Leased equipment is rented and not owned by the business. Although payment is being made towards buying the equipment it will never be owned by the business.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Hire Purchase What is hire purchase? Suggest an advantage? Where monthly payments are made for the use of the equipment. After the final payment, equipment is then owned by the business. At the end of payment period the equipment is owned by the business.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Key Term – Hire Purchase What is hire purchase? Suggest a disadvantage? Where monthly payments are made for the use of the equipment. After the final payment, equipment is then owned by the business. If a business cannot keep up with the repayments then the equipment can be taken away.

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Applying learning?

MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. MUST Apply found knowledge to identify advantages and disadvantages of various sources of finance (C/B). SHOULD Reach conclusions by justifying choices relating to sources of finance (A/A*) COULD/MIGHT Provide peer feedback to another student on their progress and level achieved. Where does a potential business get finance from to start operating? 1)You have 30 seconds to add to your list from the start of the lesson. Have you made progress? 2)Peer Assessment and/or… What level have you achieved in this lesson? Why do you think that?