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GCSE Business: How Should a Bike Repair Shop Pay for Its Van?

Students work out the interest and other costs of five ways to raise £12,000, sort short-term and long-term finance in pairs and recommend one source of finance to a small bike repair business.

GCSE Business · AQA 8132, section 3.6.1 · Free PDF and Word · No sign up

Illustration of a small bike repair van fitted out as a mobile workshop outside a bike shop, with a price tag of £12,000 and five labelled cards: A Bank loan 8%, B Overdraft 18%, C Hire purchase, D Shares 25%, E Retained profit £5,000 — Illustration created with an AI image tool to show the situation. All figures are those used in the lesson.

GCSE-Business-Sources-of-Finance-Bike-Repair-Student

Student pages. 6 pages: the five options, the tasks, a pair task and space for working. No answers.

Student PDF Student Word

GCSE-Business-Sources-of-Finance-Bike-Repair-Teacher

Teacher guide. 4 pages: lesson plan, worked answers and indicative guidance for the written recommendation.

Teacher PDF Teacher Word

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Original cases, not exam board questions. Not endorsed by any exam board.

The first student pages of How Should a Bike Repair Shop Pay for Its Van?

What students do

Sort sources of finance into internal and external
Calculate the interest on a bank loan and an overdraft, and what a rise in the overdraft rate would cost
Work out the cost of hire purchase, a friend’s share of the profit and the gap left by retained profit
Sort short-term and long-term finance in pairs, weigh advantages and disadvantages and recommend one source of finance

What the teacher gets

A lesson plan for about 55 minutes of tasks, with a shorter 45-minute version. Allow longer in the timetable for handing out and feedback
Worked answers for every calculation and question
Indicative guidance for the written recommendation. It is not an exam board mark scheme and carries no marks or grades
Editable Word versions of both files, so you can change the business or the figures

Specification

AQA GCSE Business (8132), section 3.6.1 Sources of finance: the main internal and external sources of finance, their advantages and disadvantages for a given situation and their suitability for new and established businesses, with links to interest rates (3.2.3) and private limited companies (3.1.2). Checked against the AQA specification, Version 1.0, 19 August 2016. The business, the people and every figure are fictional and the questions are original. This is not an AQA resource, and the lesson has not yet been tested in a classroom.

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