Lesson Notes By Weeks and Term - Senior Secondary School 2

Term: 1^st Term

Week: 7

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:    Commerce

Topic:-      Limited Liability Company IV

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. State the advantages and disadvantages of Limited Liability Company
2. List the sources of capital for the Limited Liability Company

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION	TEACHER’S ACTIVITY	STUDENT’S ACTIVITY
STEP 1 INTRODUCTION	The teacher reviews the previous lesson on Limited Liability company	Students pay attention
STEP 2 EXPLANATION	She states the advantages and disadvantages of Limited Liability Company	Students pay attention and participates
STEP 3 DEMONSTRATION	She lists the sources of capital for the Limited Liability Company	Students pay attention and participate
STEP 4 NOTE TAKING	The teacher writes a summarized note on the board	The students copy the note in their books

 

NOTE

ADVANTAGES OF LIMITED LIABILITY COMPANY

1. It has a separate legal identity from the owners.
2. It has perpetual succession
3. Shareholders have minimal liability
4. Economies of large scale production are possible
5. Free transferability of financial interests and shares
6. There is specialization in management
7. The risks of the business are spread over the large number of shareholders

DISADAVANTAGES OF LIMITED LIABILTY COMPANIES

1. lack of privacy in financial reporting.
2. Slow decision-making process.
3. Separation of ownership from management.
4. Subject to many legal restriction.
5. High taxation.
6. Requirement of too much documentation.
7. Conflict of interest between shareholder and directors.
8. High cost of preliminary expenses.
9. Inflexibility in business operation.

 

SOURCES OF CAPITAL

1. Government sources
2. Trade credits
3. Bank overdrafts and loans
4. Equipments leasing
5. Venture capital
6. Hire purchase
7. Issuing of shares
8. Issuing of debenture stocks
9. Retained earnings

EVALUATION:   1. State the advantages and disadvantages of a Limited Liability Company

2. List the sources of capital for the Limited Liability Company

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively