A cool way of delivering A2 sources of finance

Did this on Monday and it went down as storm with the A2 students.

When I was planning this lesson, I thought how can I make sources of finance engaging. I didnt want to simply go through the pros and cons etc. I wanted them to be more involved and think a little. I did the following (bear in mind I have an IWB but this could be read out or put on powerpoint).

For retained profit, I did it in the form of a very simple multi-choice quiz. I had around 10 questions with 3 or 4 possible solutions. Some obviously wrong, some maybes and 1 correct or potentially correct response. I also linked some of the questions to previous topics. For example:

Retained Profit is:

A A cheap source of finance

B An expensive source of finance

C A bit of both

Nice and easy that one

Retained Profit:

A Increases gearing

B Decreases gearing

C Has no effect on gearing

Building a bit of analysis here

Increasing retained profit

A Increases dividends

B Reduces dividends

C Has no effect on dividends

D What are dividends

Increasing retained profit

A Could result in the share price decreasing

B Could result in the share price increasing

C Would have no infuence on the share price

I then had some questions relating to the effect of share prices on a business and some on shareholder ratios (inductive reasoning)

I had loads more…I then followed this up with some classic connectives to really hone in on the analysis. Give them a statement I did, along the lines of:

Retained profit is profit that has been retained by the business as opposed to being paid out as dividends to the shareholders. This…...

they then had to finish the statement off using the following words:

because therefore however overall

Enjoy….....