ACTIVITIES: Lesson 1

Q – Recognize the importance of Financial System in the Philippines. (15pts)

Answer:
The financial system plays a major role in the economy,
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that’s why it is really important for a country to have a financial
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system. In this way, we can deposit, borrow, and manage our
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money or funds right and safe.
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 Short essay. Maximum of 3 sentences only.

Q – A farmer borrows funds from the government financing institution. In turn, he uses the funds for
producing palay. Do you consider this activity as business finance? Why or why not?
Answer: 15pts
Yes, it is considered activity as business finance wherein the
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farmer borrows funds to start his business in producing palay. It
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provides asset for producing palay to operate. Borrowing funds for
______________________________________________________________________________
a business or to start a business is considered as an activity as
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business finance.
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ACTIVITIES: lesson 2

a. What is sole proprietorship (5pts)

Sole proprietorship is the easiest way or type of business
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among different types of business. It is owned by one person but
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he/she could hire anyone if they want. This business may operate
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as long as the owner lives or simply there is no termination or life
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span of the business.
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b. Discuss the role of partnership (5pts)

A form of business owned by two or more persons. The details of
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the______________________________________________________________________________
arrangement between the partners are outlined in a written
document called articles of partnership. Profits are divided among
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partners based on their agreed sharing. The owner is called a partners.
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c. Define a corporation (5pts)

A corporation is a business organized as a separate legal entity
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or______________________________________________________________________________
artificial person under the corporation law with ownership divided
into transferable shares of stocks, it is the law (Corporation Code of
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the Philippines) that creates a corporation.
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 ACTIVITIES: lesson 3
Q – Give at least 5 classifications of corporation. Define each. (2pts each)
ANSWER –
 Centralized management by the board of directors- business is delegated
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by the shareholders to the Board of Directors
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 Separate______________________________________________________________________________
legal existence- it owns property in its own right and not its directors.
 Created ______________________________________________________________________________
by operation of law-it is the law Corporation Code of the Philippines.
 Transferrable units of ownership-ownership can be transferred by sale of stock.
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 Limited _____________________________________________________________________________
liability of stockholders-legal protection for stockholders.

• Q – What are the principal regulatory agencies concerned with the business operations. (2pts each)
ANSWER –
1. Bangko Sentral ng Pilipinas (BSP)
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2. Securities & Exchange Commission (SEC)
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3. Department of Trade & Industry (DTI)
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4. Department of Labor & Employee (DOLE)
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5. Department of Finance (DF)
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• Q - On the different forms of organization; state who will be the signatories in the application for
business registration. (3pts each)
ANSWER -
1. Sole Proprietorship – The Owner, DTI, or BIR.
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2. Partnership – Among partners and SEC.
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3. Corporation – The shareholders and Securities & Exchange Commission (SEC)
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4. Cooperative – The members and Cooperative Development Authority (CDA)
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