Lesson Plan

• Describe the key differences between unlimited and limited liability structures.
• Explain how liability type influences owners’ financial risk and control.
• Analyse why limited liability encourages investment and economic growth.
• Apply a decision‑making checklist to choose an appropriate business form.

• Projector and screen
• PowerPoint slides summarising liability concepts
• Comparison chart handout (Unlimited vs Limited)
• Worksheet with decision‑making checklist
• Whiteboard and markers

Begin with a quick poll: “If your business failed, would you risk losing your house?” Use the responses to highlight personal risk. Link this to prior knowledge of sole traders and partnerships. State that by the end of the lesson students will be able to identify which business form best matches an entrepreneur’s goals.

1. Do‑Now (5’) – Students list advantages/disadvantages of being a sole trader on a sticky note.
2. Mini‑lecture (10’) – Define unlimited and limited liability with real‑world examples; show slide diagram.
3. Comparison activity (12’) – In pairs, complete the handout table contrasting the two structures; teacher circulates for misconceptions.
4. Decision‑making simulation (15’) – Groups evaluate a fictional startup using the checklist; decide on the most suitable structure and justify.
5. Whole‑class debrief (8’) – Groups share choices; discuss economic implications of limited liability.
6. Formative check (5’) – Quick quiz via Kahoot to confirm key concepts.

Recap the main differences and why they matter for owners and the economy. Ask students to write one “exit ticket” sentence summarising when limited liability is preferable. Assign homework: research a local business and identify its liability structure, noting the reasons behind the choice.