Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the difference between cash and profits
Learning Objective/s:
  • Describe the distinction between cash and profit in a business.
  • Explain why cash liquidity and profit performance are both critical for decision‑making.
  • Calculate cash flow and profit using simple formulas.
  • Interpret a basic cash‑vs‑profit statement to identify potential cash shortfalls.
  • Apply the concepts to evaluate a small retailer’s financial health.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with cash vs profit table
  • Calculator or spreadsheet software
  • Whiteboard and markers
  • Example business scenario handout
 Introduction:
Begin with a quick poll: “If a business makes a profit, does it always have enough cash to pay its bills?” Discuss common misconceptions, then outline that today’s success criteria are to differentiate cash from profit, calculate each, and explain their managerial implications.
Lesson Structure:
  1. Do‑Now (5') – Students review a short scenario and note whether cash or profit is mentioned.
  2. Mini‑lecture (10') – Define cash and profit, show formulas, and highlight key differences.
  3. Guided practice (12') – Work through the retailer example together, filling a cash‑flow and profit table.
  4. Pair activity (10') – Students create a simple cash‑vs‑profit statement for a new hypothetical shop.
  5. Check for understanding (8') – Quick quiz (Kahoot or exit ticket) with three conceptual questions.
  6. Summary discussion (5') – Relate cash importance to short‑term survival and profit to long‑term growth.
Conclusion:
Recap that cash shows liquidity while profit shows overall performance, and both must be monitored. For the exit ticket, students write one real‑world example where a profitable business could still face cash problems. Homework: complete a worksheet converting a set of transactions into cash flow and profit figures.