Business SENIOR

HIGH
Finance SCHOOL

Self-Learning
Finance, Financial Management, Module

and its Activities 1

Quarter 3
Business Finance - 12
Quarter 3 – Module 1: Finance, Financial Management, and its Activities
First Edition, 2020

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Business SENIOR
HIGH

Finance SCHOOL

Self-Learning
Module

1
Quarter 3
Finance, Financial
Management, and its
Activities
Introductory Message

For the Facilitator:

Welcome to the Business Finance Self-Learning Module on Finance, Financial

Management, and its Activities!

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
 For the Learner:

Welcome to the Business Finance Self-Learning Module on Finance, Financial

Management, and its Activities!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectation - This points to the set of knowledge and skills that

you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATIONS

At the end of the lesson, you are able to define finance, financial management,
and its divisions and activities.

PRETEST

DIRECTIONS: Read and decide whether the following are Capital or Financing
decisions. Write your answer on the space provided.

____________ 1. Red Mobile Company installed additional cell sites in the provinces.

____________ 2. Trinoma decides to borrow a loan from a bank to upgrade its facilities.

____________3. Nikon decides to spend its cash in developing a new camera

technology.

____________ 4. Unilever Corporation issues new shares of stocks to have enough

cash for plant expansion.

____________ 5. Pharex buys a license to produce and sell a new pill that will cure
impotency.

RECAP

Do you still remember your lessons in Fundamentals of Accounting?

How about in Organization and Management? What can you say about Applied
Economics? All those subjects are related to Finance.
 LESSON

Finance in Everyday Life

People confront the financial crisis and need to tackle financial risks daily. As
it is important to manage risks in business, it is equally important to manage risks
in life as wells.

• Finance. It studies how individuals, institutions, governments, and businesses

acquire, spend, and manage money and other financial assets. It is also about
money and its management.

• Financial Management. It involves financial planning, asset management, and

fundraising decision to enhance the value of businesses.
Deals with decisions that are supposed to maximize the value of
shareholders’ wealth. (Cayanan) - These decisions will ultimately affect the
market’s perception of the company and influence the share price. - The goal
of financial management is to maximize the value of shares of stocks.

Financial Management
Divisions

Treasurer Controller

Managing the firm’s cash. For cost accounting,

Takes care about the external financial accounting, and tax
factors of the firm. record keeping activities. Takes
Activities: the internal factors of the firm.
1. acquiring assets Activities:
2. selling stocks 1. economic appraisal
3. insurance matters 2. protection of assets
4. credit and collection 3. evaluation of company
5. determination of employees objective and policies
benefits 4. interpretation of the results
of operation
5. budgeting
 • Financial Managers are responsible for the financial health of an
organization. They produce financial reports direct investment activities and
develop strategies and plans for the long term financial goals of their
organization. Managers of a corporation are responsible for making the
decisions for the company that would lead towards shareholders’ wealth
maximization.

Competent managers may have any of the following attributes:

1) visionary
2) decisive
3) people-oriented
4) inspiring
5) innovative
6) respected
7) experienced/seasoned manager

ACTIVITIES

DIRECTIONS. Analyze the situation and answer the questions on a separate sheet of
paper.

Situation
William and Wendy went to UST together for their college education. After
graduation, they were hired by a medium size corporation that wants to bring in new
financial managers. William took up Business Administration – Major in Financial
Management while Wendy obtained a B.S. Accountancy degree and is now a CPA.

Questions:
1. Who is more suited to become a treasurer? Why?
2. How about a controller? Explain your answer.
 WRAP-UP

• What is your understanding of finance?

• How do you describe a Financial Manager?
• What are the divisions of Financial Management that help in making
the company successful?

VALUING

• What is the significance of understanding Finance?

• Do you think every individual should know about finance and financial
management? Explain your answer.
• How important are the decisions of a financial manager in running a
company?
• Do you think having a Financial Manager will help a company grow?
Why or why not?
 POSTTEST

DIRECTIONS: Read the questions and encircle your answer.

1 It involves the management of financial resources available to the organization.

To operate a business needs of variety of assets either tangible or intangibles.
A. Finance B. Economics
C. Management D. Business finance

2. It is not enough to have cash and other resources today. Such resources
without this if not managed properly can be wiped out.
A. Marketing management B. Financial instrument
C. Financial market D. Financial management

3. The primary goal of the financial manager is?

A. Minimizing risk B. Maximizing wealth
C. Maximizing profit D. Minimizing return

4. The wealth of the owners of a corporation is represented by.

A. Share value B. Profits
C. Earnings per share D. Cash flow

5. Which one is the function of the controller?

A. Interpretation of result of operations.
B. Banking and foreign exchange problem
C. Determination of employee’s benefits
D. None of the above
 KEY TO CORRECTION

result and budgeting.

financial statement
interpretation of
concerns the
controller because it
5. Capital 2. Wendy as a A 5.
stocks, etc. A 4.
4. Financing
acquiring assets, C 3.
3. Financing in external which is D 2.
2. Financing treasurer works more A 1.
1. Capital William – because
Pretest Exercises: Posttest

REFERENCES

Alminar-Mutya, Ruby F. (2015). Basic Business Finance. Manila, Philippines:

National Book Store.
Domingo, James Cristopher D. (2013). Business Finance. Manila, Philippines: GIC
Enterprise & Co. Inc.
Business Finance Teachers Guide
https://simple.wikipedia.org/wiki/Finance