COMMERCE LESSON PLAN
WEEK: 4th DATE: 13TH – 17TH OCTOBER, 2025 CLASS: SS2
SUBJECT: COMMERCE
LESSON TITLE: LIMITED COMPANIES (CONTD)
SUB-TITLE (IF ANY): SOURCES OF CAPITAL OF A COMPANY, DIFFERNCE BETWEEN PRIVATE AND
PUBLIC LIMITED COMPANY, ADVANTAGES AND DISADVANTAGES
PERIOD: 1ST AND 2ND DURATION: 80 MINUTES
LEARNING OBJECTIVES: By the end of the lesson, the students will be able to:
i). state sources of capital of a company
ii). differentiate between private limited and public liability company
iii). list advantages and disadvantages of limited liability company
KEY VOCABULARY WORDS: Limited, company, liability, public, private
RESOURCES AND MATERIALS: Essential Commerce for Senior Secondary School by O. A. Longe
Page 126 - 129
BUILDING BACKGROUND/CONNECTION TO PRIOR KNOWLEDGE: The Students are familiar with
the word Company and they have been taught limited company.
CONTENT
SOURCES OF CAPITAL FOR A PRIVATE COMPANY
i). LOANS AND OVERDRAFT: Loans and overdraft can be gotten from commercial or
development banks
ii). SHARES RAISED BY SHAREHOLDERS: Shares are usually raised by shareholders who form the
capital base of a company.
iii). STOCKS: These are loans of long term nature which are secured by the company’s assets
SOURCES OF CAPITAL FOR A PUBLIC COMPANY
i). HIRE PURCHASE: Facilities can be granted to the company buy and pay by installments
ii). BILL OF EXCHANGE: This is a document dully signed by the debtor’s bank to the creditor and
the creditor cashes the money with some discounts.
iii). TRADE CREDIT: Raw materials can be purchased by the joint stock company on credit.
DIFFERENCES BETWEEN PRIVATE AND PUBLIC LIMITED LIABILITY COMPANY
PRIVATE LIMITED COMPANY PUBLIC LIMITED COMPANY
Shares are not easily transferable except Shares are easily transferable
with the consent of their members
It shares are not quoted in the stock Shares are quoted in the stock exchange
exchange market market
Has minimum of two people as shareholders Has a minimum of seven shareholders
It has maximum number of 50 owners It has no maximum number of owners
It does not issue debentures It issues debentures
They do not need certificate of trading to They need certificate of trading to commence
commence trading trading
They are small or medium size and have They are large in size and have large capital
limited capital
They are not allowed to use “Plc.” “Ltd” or They are allowed to use the abbreviation but
“Unltd” “plc” public limited company
ADVANTAGES AND DISADVANTAGES OF LIMITED LIABILITY COMPANY
ADVANTAGES OF PRIVATE LIMITED LIABILITY COMPANY
i). They can easily raise large capital
ii). They enjoy a large profit because of their large size.
iii). It has a legal entity hence it can sue and be sued in its own name
iv). Shareholders have limited liability: In the event of business failure, the shareholder only
loses his shares which he has contributed and his personal properties and assets are protected.
DISADVANTAGES OF PRIVATE LIMITED LIABILITY COMPANY
i). Lack of privacy as companies are required to publicize their account
ii). Limited Capital due to few number of shareholders and shares cannot be sold to the public
iii). Shares are not sold to the public
ADVANTAGES OF PUBLIC LIMITED LIABILITY COMPANY
i). They have existence hence they can sue and be sued
ii). Large capital by selling more shares or debentures to the public
iii). Transferability of shares: Shares can easily be transferred without affecting the business
operations
DISADVANTAGES OF PRIVATE LIMITED LIABILITY COMPANY
i). Lack of privacy: They lack privacy because they are mandated to publish their annual audited
accounts to the public.
ii). Hard to establish: The procedures and formalities involved in registration are very hard and
complicated
iii). Conflict of Interest: There is the possibility of conflict of interest from the shareholders,
directors, and staffs which may affect the operations of the business.
STRATEGIES AND COMMUNICATION: Communication and Interaction Method:
ACTIVITITY 1: Teachers writes the learning objectives, topic and the key vocabulary words on
the marker board and share with the students.
ACTIVITY 2: Teacher reviews the last topic with the students by asking them questions.
ACTIVITY 3: Students as a class, states sources of capital of company while the teacher guides
them in their explanations.
ACTIVITY 4: Students in a small groups, differentiate between private limited and public liability
company, while the teacher guilds them in their explanations
ACTIVITY 5: Students in a small groups, state the advantages and disadvantages of private and
public limited company, while the teacher guilds them in their explanations.
ACTIVITY 6: Students are allowed to ask questions, while the teacher supplies answers to their
questions.
ASSESSMENT (EVALUATION): a) List three (3) sources of capital of a company (b) List three (3)
differences between private and private limited company.
WRAP-UP (CONCLUSION): Sources of capitals of a company includes stocks, shares raised by
shareholders/sales of shares, hired purchase, loans and overdraft etc.
ASSIGNMENT: State three (3) advantages of public limited company
H.O.D/VP’S COMMENT AND ENDORSEMENT:
