Business Studies Activity: The Project Cycle

This is for use in KS 3 Business Studies

Why do this unit?

This unit get pupils thinking about further about cash flow.

What does this unit do?

This unit involves a definitions research task, and an interactive drag and drop exercise where students consider the cash flow cycle of a particular project.


Interactive whiteboard or data projector, PCs for pupils, printer.



A Q&A session recaps on cash flow and, in particular, the ways cash can be brought in quickly or delayed from leaving the business.

Main activities:

Click on the “Prospectus and Financial Information” for The London Underground Electric Railway Company
and read the first three sections only.

Now answer these questions using your knowledge, text book and/or internet research. Each answer is worth 3 marks, so ensure you give a good, solid definition and an example:

1. What is meant by interest?

2. What is a debenture and how might an investor benefit?

3. What is trade credit?

Next look at the Financial Summary further down the link and answer the following questions:

4. What is a government grant and in what circumstances might one be awarded now?

5. Explain what you think is meant by the term “a safe investment”.

Finally, time for some instant feedback on your knowledge:

6. Complete the task (called Cash Cycle spreadsheet) by putting in order the cash cycle you might expect for this project. You MUST copy and paste, not cut and paste or you will not get a score!


Recap that cash flow can be influenced by the business through:

Obtaining finance (often overdraft)

Securing trade credit to delay payment for stock

Ensuring they chase promptly any monies owed to the business

(It is worth explaining again that, in the context of improving cash flow, answers like “advertise more so they sell more” or
“increase prices to get more money in” are not relevant.)