Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Business
Lesson Topic: internal sources of finance: owners investment, retained earnings, sale of unwanted assets, sale and leaseback of non-current assets and working capital
Learning Objective/s:
  • Describe the five main internal sources of finance and their key characteristics.
  • Explain the advantages and disadvantages of each internal source.
  • Calculate retained earnings using the given formula.
  • Evaluate which internal source is most appropriate for different financing needs.
  • Apply working‑capital management techniques to improve cash flow.
Materials Needed:
  • Projector and screen for slides.
  • Printed handout summarising internal sources.
  • Whiteboard and markers.
  • Calculator worksheets for retained earnings calculations.
  • Case‑study cards illustrating asset sale and lease‑back scenarios.
 Introduction:
Begin with a quick poll: how many have seen a business reinvest profits or sell equipment to raise cash? Recall that finance can come from inside or outside a firm – today we’ll focus on internal options. By the end of the lesson you will be able to identify, compare and apply internal sources of finance.
Lesson Structure:
  1. Do‑now (5') – Students list ways a business can obtain cash without borrowing (pair share). Teacher collects ideas.
  2. Mini‑lecture (10') – Present the five internal sources using slides, highlighting key features and the retained‑earnings formula.
  3. Guided analysis (12') – Work through a sample retained‑earnings calculation on the board; students complete a worksheet.
  4. Case‑study activity (15') – Groups receive a scenario (e.g., selling unwanted machinery or sale‑and‑lease‑back) and decide which internal source to use, justifying pros and cons.
  5. Comparison table review (8') – Examine the provided comparison table, discuss advantages/disadvantages, and fill a quick Venn diagram.
  6. Check for understanding (5') – Exit ticket: write one advantage and one limitation for each internal source.
Conclusion:
Summarise that internal finance avoids new debt but each source has trade‑offs. For homework, complete the worksheet on working‑capital improvements and bring a real‑world example of a company using a sale‑and‑lease‑back arrangement.