Lesson Plan

• Describe the four internal sources of finance and their key characteristics.
• Explain how each source affects cash flow and ownership structure.
• Analyse the advantages and limitations of owners’ investment, retained profit, sale of unwanted assets, and working capital management.
• Apply simple strategies to improve working capital in a business context.

• Projector and screen
• Whiteboard and markers
• Printed handout with the comparison table
• Worksheet containing a short case study
• Calculators
• Sticky notes for exit tickets

Begin with a quick poll: “Where does a business get money without borrowing?” Use the responses to link to prior knowledge of equity and profit. State that today’s success criteria are to identify internal finance sources, compare their features, and suggest practical ways to boost working capital.

1. Do‑now (5') – short quiz on different finance sources displayed on the board.
2. Mini‑lecture (10') – concise overview of owners’ investment, retained profit, sale of unwanted assets, and working capital, using the handout table.
3. Group case‑study activity (15') – students read a scenario and decide which internal source(s) best fund the proposed expansion, recording their reasoning.
4. Comparison table analysis (10') – groups discuss the table’s columns (nature, cost, availability, ownership impact) and present one advantage and one limitation for each source.
5. Working capital simulation (10') – JIT inventory exercise where learners calculate the effect of reducing stock levels on cash flow.
6. Exit ticket (5') – on a sticky note, each student writes one key benefit of each internal source.

Summarise the four internal finance options and highlight how effective working‑capital management can free up cash without external borrowing. Collect exit tickets to check understanding, and assign a homework task: research a real company’s recent use of an internal finance source and prepare a brief report.