Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 2nd Term
Week: 3
Age: 15 years
Duration: 45 minutes
Subject: Economics
Curriculum Theme: Economics
Previous Lesson: Firms and Industry: Problems of Business Enterprises.
Topic: Firms and Industry
Subject Matter: Definition of private companies and public companies; characteristics of private companies and public companies; distinction between private and public companies.

Specific Objectives

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

Cognitive Domain:

Define a private company.
Define a public company.
List characteristics of private companies.
List characteristics of public companies.
Distinguish between private and public companies using stated points.
Give local examples of private and public companies.

Affective Domain:

Show interest in identifying business organisations in the community.
Appreciate the importance of following company rules and regulations.

Psychomotor Domain:

Classify given business names into private and public companies using a simple table.
Draw a comparison table showing differences between private and public companies.

Participate actively in group discussion and presentations.
Work cooperatively to provide local examples and compare them correctly.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum
State Unified Scheme of Work
Recommended Economics textbook for Senior Secondary Schools (e.g., Comprehensive Economics for SSS, Book 1)
Encyclopaedia Britannica: Corporation
Investor.gov: Initial Public Offering (IPO)
Investopedia: Private Company

Instructional Materials

The teacher will teach this lesson with the aid of:

Examples of local private and public companies (names and brief descriptions)
Visit to a business location (where possible) or a simple case study from the locality
Charts showing comparison points between private and public companies
Board and markers/chalk

Rationale for the Lesson

This lesson helps pupils understand how different companies are owned and managed in the economy. It enables pupils to identify private and public companies around them and understand how each type affects jobs, investment, and business decisions.

Prerequisite/Previous Knowledge

Pupils can mention common businesses in their locality and have basic knowledge of firms and industries.

Lesson Content/Board Summary

Private and Public Companies

Definition of a private company

A private company is a business organisation owned by a small group of people and not allowed to sell its shares to the general public.

Definition of a public company

A public company is a business organisation that is allowed to sell shares to the general public and may be listed on a stock exchange.

Characteristics of private companies

The following are characteristics of private companies:

Ownership is held by a small number of shareholders (often family or close associates).
Shares are not offered for sale to the general public.
Transfer of shares is usually restricted by company rules.
Capital is mainly raised from owners’ funds, bank loans, and private investors.
Control and decision-making are concentrated among a few owners/directors.
Business information is less publicly disclosed compared to public companies.

Characteristics of public companies

The following are characteristics of public companies:

Ownership is open to a large number of shareholders.
Shares can be offered to the public and may be traded on a stock exchange.
Transfer of shares is generally easier than in private companies.
Capital can be raised through public share issues and other public funding sources.
Management is often separated from ownership (run by directors/managers for shareholders).
Greater disclosure and reporting requirements to regulators and shareholders.

Distinction between private and public companies

The following are distinctions between private and public companies:

Share sale: private companies do not sell shares to the public; public companies sell shares to the public.
Number of shareholders: private companies have fewer shareholders; public companies have many shareholders.
Transfer of shares: private company shares are restricted; public company shares are more easily transferred.
Capital raising: private companies rely more on private funds and loans; public companies can raise large funds from the public.
Disclosure: private companies disclose less to the public; public companies disclose more through reports and regulations.
Control: private companies are controlled by a few owners; public companies have wider ownership and formal corporate governance.

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 asks pupils to mention businesses they know in the locality and whether the businesses are owned by a family, a few people, or many shareholders. The teacher links responses to private and public companies.
Pupils’ Activity: Pupils mention business names and state how they think the businesses are owned.
Learning Point: Businesses can be organised as private or public companies based on ownership and share issues.

Step 2: Definition of private company

Time: 5 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines a private company and writes the definition on the board with simple examples from the local environment.
Pupils’ Activity: Pupils copy the definition and mention one private company example they know.
Learning Point: A private company is owned by a few people and does not sell shares to the public.

Step 3: Definition of public company

Time: 8 minutes
Teaching Skill: Explanation and Questioning
Teacher’s Activity: The teacher defines a public company and explains the idea of shares being offered to the public, using a simple scenario of many people buying shares.
Pupils’ Activity: Pupils give examples of public companies they have heard of and state one reason such companies can raise more funds.
Learning Point: A public company can sell shares to the public to raise capital.

Step 4: Characteristics of private companies

Time: 7 minutes
Teaching Skill: Discussion and Board Work
Teacher’s Activity: The teacher guides pupils to list the characteristics of private companies and records correct points on the board.
Pupils’ Activity: Pupils list characteristics and provide local illustrations (family-owned or closely held businesses).
Learning Point: Private companies have restricted ownership and limited share transfer.

Step 5: Characteristics of public companies

Time: 8 minutes
Teaching Skill: Discussion and Demonstration
Teacher’s Activity: The teacher uses a prepared chart to show characteristics of public companies and explains disclosure and share transfer in simple terms.
Pupils’ Activity: Pupils study the chart, list characteristics, and ask questions for clarification.
Learning Point: Public companies have wider ownership and higher reporting requirements.

Step 6: Distinction between private and public companies

Time: 5 minutes
Teaching Skill: Comparison/Classification
Teacher’s Activity: The teacher leads pupils to compare private and public companies and draws a two-column table on the board for differences.
Pupils’ Activity: Pupils complete a comparison table in their notebooks and give examples under each type.
Learning Point: Private and public companies differ in share issue, ownership size, capital sources, and disclosure.

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 a private company.
Define a public company.
List four characteristics of private companies.
State four distinctions between private and public companies.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summary
Teacher’s Activity: The teacher summarises the definitions, characteristics, and key differences between private and public companies and gives an assignment: write five differences and provide two examples of each type from Nigeria or the locality.
Pupils’ Activity: Pupils copy the summary points and assignment.
Learning Point: Private and public companies can be identified using clear features and comparison points.

Lesson Keywords

Company – a legal business organisation formed to produce goods or provide services.
Private company – a company owned by a few people and not allowed to sell shares to the public.
Public company – a company allowed to sell shares to the general public.
Share – a unit of ownership in a company.
Shareholder – a person or organisation that owns shares in a company.
Capital – funds used to start and run a business.
Disclosure – providing business information through reports for accountability.

Differentiation

Support learners who need help with a prepared comparison table containing partially filled points, while advanced learners analyse a short local case study and identify whether it fits a private or public company with reasons.

Note for teachers using this lesson plan

Use familiar local examples to make the definitions clear and keep the board summary focused on examinable points. Emphasise the comparison table and ensure pupils can state distinctions clearly for tests and examinations.