Lesson Plan

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Lesson Plan
Grade: Year 10 Date: 17/01/2026
Subject: Business Studies
Lesson Topic: concept of liquidity
Learning Objective/s:
  • Define liquidity and explain its importance for business stability.
  • Calculate and interpret the current ratio, quick ratio, and working capital using given data.
  • Analyse factors that affect a company's liquidity and propose appropriate improvement strategies.
  • Evaluate liquidity statements to make short‑term financial decisions.
Materials Needed:
  • Projector and screen for slides
  • Whiteboard and markers
  • Calculator worksheets with balance‑sheet data
  • Handout of liquidity formulas and revision checklist
  • Laptop with spreadsheet software for calculations
 Introduction:
Begin with a quick poll: “If you ran a shop, how would you know you can pay your bills today?” Connect this to students’ prior experience of managing pocket money. Explain that today they will master the concept of liquidity and learn to assess a business’s short‑term health. Success will be measured by correctly calculating key ratios and interpreting the results.
Lesson Structure:
  1. Do‑Now (5’) – Students list ways a business needs cash; share ideas.
  2. Mini‑lecture (10’) – Define liquidity, present key ratios and formulas with examples.
  3. Guided practice (15’) – In pairs, work through the XYZ Ltd balance sheet to calculate current assets, current ratio, quick ratio, and working capital.
  4. Think‑pair‑share (5’) – Discuss what the calculated ratios reveal about XYZ Ltd’s liquidity.
  5. Factors & improvement (10’) – Brainstorm factors affecting liquidity and match each to a practical improvement strategy.
  6. Quick revision checklist (5’) – Students complete a checklist individually as formative assessment.
  7. Exit ticket (5’) – Write one actionable step a manager could take to improve liquidity.
Conclusion:
Summarise that liquidity measures a firm’s ability to meet short‑term obligations and is assessed via current and quick ratios plus working capital. Ask students to write one key takeaway on a sticky note as an exit ticket. For homework, assign a worksheet requiring liquidity calculations for a new case study.