Class: Senior Secondary School 1 (SS1 / SSS 1)
Term: Second Term
Week: 8
Age: 15 years
Duration: 45 minutes
Subject: Salesmanship
Curriculum Theme: Trade
Previous Lesson: Finance: Meaning of Finance,.
Topic: FINANCE
Subject Matter: Functions of financial institutions to a salesman, Long term financing, Short term financing, Methods of business financing

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define finance in the context of business.
State at least three functions of financial institutions to a salesman.
Differentiate between long-term and short-term financing.
List at least two methods of business financing.

Affective Domain:

Appreciate the importance of finance in successful sales operations.
Recognize the role of financial institutions in supporting business activities.

Psychomotor Domain:

Illustrate examples of long-term and short-term financing sources.
Complete a simple loan application form, if provided.

Discuss with peers how different financing options can affect a business.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Senior Secondary Schools.
State Unified Scheme of Work for Salesmanship.
Salesmanship for Senior Secondary Schools, Book 1.

Instructional Materials

The teacher will teach this lesson with the aid of:

Loan forms
Charts illustrating types of financing
A calculator
Whiteboard and markers

Rationale for the Lesson

This lesson helps pupils understand how businesses obtain and manage money. It is important for a future salesman to know about finance to effectively manage sales operations, understand business funding, and advise customers on payment options.

Prerequisite/Previous Knowledge

Pupils have basic knowledge of business, trade, and the concept of money from previous lessons.

Lesson Content/Board Summary

FINANCE

Meaning of Finance

Finance refers to the management of money, credit, banking, and investments. In business, it involves how businesses raise, allocate, and use monetary resources.

Functions of Financial Institutions to a Salesman

Financial institutions perform several functions that help a salesman and their business. These include:

Providing loans and credit facilities to businesses for operations, expansion, or inventory purchase.
Facilitating payment systems, such as electronic transfers, cheques, and point-of-sale services, making transactions easier for salesmen.
Offering investment opportunities for businesses to save and grow their capital.
Providing advisory services on financial planning and management.
Issuing letters of credit and guarantees, which help salesmen engage in international trade securely.

Types of Business Financing

Business financing can be broadly categorized based on the duration for which the funds are needed.

Long-Term Financing

Long-term financing involves funds obtained for a period exceeding one year, usually for major capital investments or business expansion. These funds are used to acquire fixed assets like land, buildings, and machinery.

Examples of sources for long-term financing include:

Issuing shares (equity)
Issuing debentures (long-term loans)
Bank term loans
Retained earnings
Mortgages

Short-Term Financing

Short-term financing involves funds obtained for a period of one year or less. These funds are typically used to meet immediate working capital needs, such as purchasing inventory, paying wages, or covering operational expenses.

Examples of sources for short-term financing include:

Bank overdrafts
Trade credit (buying on credit from suppliers)
Commercial papers
Factoring of receivables
Short-term bank loans

Methods of Business Financing

Businesses can acquire finance through various methods, which often fall into two main categories: equity and debt.

The following are common methods of business financing:

Equity Financing: Raising funds by selling ownership shares in the company to investors. This includes issuing ordinary shares, preference shares, or using retained earnings.
Debt Financing: Raising funds by borrowing money that must be repaid with interest. This includes bank loans, debentures, bonds, and overdrafts.
Venture Capital: Funding provided by investors to start-up companies and small businesses with perceived long-term growth potential.
Angel Investors: High-net-worth individuals who provide financial backing for small start-ups or entrepreneurs, usually in exchange for ownership equity.
Grants: Non-repayable funds disbursed by a grantor (often a government department, corporation, foundation, or trust) to a recipient.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and asks them what they understand by money and how businesses get money to operate. The teacher links their responses to the lesson topic, Finance.
Pupils’ Activity: Pupils respond to the teacher’s questions and listen attentively.
Learning Point: Pupils are introduced to the topic of Finance and its relevance to business.

Step 2: Presentation of Functions of Financial Institutions

Time: 10 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains the concept of finance and then discusses the various functions financial institutions perform for a salesman, using real-life examples. The teacher writes key points on the board.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the meaning of finance and the role of financial institutions.

Step 3: Explanation of Long-Term Financing

Time: 8 minutes
Teaching Skill: Explanation/Differentiation
Teacher’s Activity: The teacher explains long-term financing, its characteristics, and provides examples of sources. The teacher uses charts to illustrate.
Pupils’ Activity: Pupils listen, observe the charts, and identify sources of long-term financing.
Learning Point: Pupils learn about long-term financing and its sources.

Step 4: Explanation of Short-Term Financing

Time: 7 minutes
Teaching Skill: Explanation/Comparison
Teacher’s Activity: The teacher explains short-term financing, its characteristics, and provides examples of sources. The teacher draws comparisons with long-term financing.
Pupils’ Activity: Pupils listen, take notes, and differentiate between short-term and long-term financing.
Learning Point: Pupils understand short-term financing and its differences from long-term financing.

Step 5: Discussion of Methods of Business Financing

Time: 5 minutes
Teaching Skill: Discussion/Elaboration
Teacher’s Activity: The teacher discusses the various methods by which businesses can obtain finance, such as equity financing, debt financing, venture capital, and grants.
Pupils’ Activity: Pupils participate in the discussion, contributing ideas and asking questions.
Learning Point: Pupils learn about different methods of business financing.

Step 6: Class Activity/Application

Time: 5 minutes
Teaching Skill: Application/Problem-solving
Teacher’s Activity: The teacher presents a scenario where a small business needs funds for different purposes (e.g., buying a new delivery van vs. buying more stock). Pupils are asked to suggest appropriate financing options.
Pupils’ Activity: Pupils work in small groups or individually to suggest suitable financing options for the given scenarios.
Learning Point: Pupils apply their knowledge of financing types to practical situations.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define finance.
List three functions of financial institutions to a salesman.
Differentiate between long-term and short-term financing.
Mention two methods of business financing.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the key points of the lesson, reinforcing the importance of finance in business and salesmanship. The teacher assigns homework: “Research one financial institution in Nigeria and write a short note on how it supports small businesses.”
Pupils’ Activity: Pupils listen to the summary and copy the homework.
Learning Point: Pupils consolidate their understanding of the topic.

Lesson Keywords

Finance – The management of money, credit, banking, and investments.
Financial Institutions – Organizations that provide financial services, such as banks and credit unions.
Long-Term Financing – Funds obtained for a period exceeding one year, used for capital investments.
Short-Term Financing – Funds obtained for a period of one year or less, used for working capital needs.
Equity Financing – Raising funds by selling ownership shares in a company.
Debt Financing – Raising funds by borrowing money that must be repaid with interest.

Differentiation

For pupils who grasp concepts quickly, the teacher can provide additional case studies on business financing challenges. For pupils needing more support, the teacher can provide simplified definitions and focus on core concepts, using more visual aids and one-on-one explanations.

Note for teachers using this lesson plan

Encourage pupils to share real-life examples of businesses they know that have used different financing methods. Utilize local examples of financial institutions. Emphasize the practical implications of finance for a salesman, such as managing cash flow, offering credit to customers, or understanding product pricing based on funding costs.