Business Studies Activity: Sources of Finance

This is for use in KS 4 Business Studies

Why do this unit?

This unit helps students to become aware of the problems facing businesses when they wish to raise funds, and to become familiar with different sources of finance for business.

What does this unit do?

Students need to be aware of the difficulties that many new businesses face when attempting to raise funds. Students should be familiar with the main sources of finance available to a small business, including: overdraft, bank loans and mortgages, loans from friends and family, and grants.


Interactive whiteboard or data projector, PCs for pupils, printer.



A whole-class discussion covers the fact that every firm needs money to start up, run, replace machinery and grow; and that capital expenditure is the term given to the money spent when starting up a business. This includes purchases such as land, premises etc. Expenditure can be funded from internal and external sources.

Main activities:

There are three main activities (probably 2 to 2.5 hours of lesson time):

1. A 'fill in the blanks' - see worksheet 1 below - to give some theory notes.

2. A research activity whereby students are given a proforma - see worksheet 2: activity proforma below - to complete using their text book or internet.

3. Using the Risks & Rewards website, students read the cartoon on bank loans. They then to attempt to answer the question in worksheet 3 ‘Women on the Move’ (see below). It may be useful to pair them to do a plan and then write individual timed answers.


Peer mark the examination question using the answer scheme provided and look to assess each of the assessment objectives. (See Mark Scheme for Women on the Move) Teacher will probably offer feedback as well.