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BUSINESS FINANCE
Module 1:
Introduction to Financial
Management
AIRs - LM
LU_ Business Finance_Module 1
ABM – BUSINESS FINANCE
Module 1: Introduction to Financial Management
Second Edition, 2021
Copyright © 2021
La Union Schools Division
Region I
All rights reserved. No part of this module may be reproduced in any form
without written permission from the copyright owners.
Management Team:
BUSINESS FINANCE
Module 1:
Introduction to Financial
Management
Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.
In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.
Thank you.
This module will provide you information and activities that will lead you to
understand financial Management, financial institution, financial instrument,
financial market and the different individuals involved
After going through this module, you are expected to attain the following
objectives:
Learning Competencies:
1. Explain the major role of financial management and the different
individuals involved (ABM_BF12-IIIa)
2. Distinguish a financial institution from financial instrument and financial
market (ABM_BF12-IIIa)
Subtasks:
1. Define finance.
2. Define financial institution, financial instrument and financial market.
3. Describe who are responsible for financial management within an
organization.
4. Distinguish a financial institution from financial instrument and financial
market.
Activity 1. Read carefully each item and use separate sheet for your answers.
Write only the letter of the best answer for each test item.
2. It is the division of finance that deals with how corporations deal with funding
sources, capital structure and investment decisions.
A. Behavioral Finance
B. Corporate Finance
C. Personal Finance
D. Stock Finance
Have you ever tried to budget your money for a week or for a month? Have you
ever asked yourself how do companies and individuals acquire money needed such
as capital? All of this involved what we called finance.
Finance is a term for matters regarding the management, creation and study
of money and investments. Specifically, it deals with a term or broadly describing the
study and a system of money, investments and other financial instruments.
Finance can be broadly divided into three categories: a.) public finance,
b.) corporate finance and c.) personal finance.
The success of an operation of firms and markets can be achieved with the
help of the person involved in financing which is called financial managers.
There are two types of Financial manager; namely: a.) the controllers who
direct the preparation of financial reports and summarize and forecast the
organization’s financial position such as income statement and b.) credit managers
who oversee the firm’s credit business.
Directions. Fill in the crossword puzzle with the correct answers identified in
the statements below. Match the number of the question with the given boxes
placed across and down the grid. If answered correctly the words will fit neatly
into the puzzle. Write you answer in a separate sheet of paper.
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ACROSS DOWN
1. Describes the study and the system of money, 2. It is a type of finance that
investments, and other financial instruments. defines all financial decisions and
3. Financial manger that directs preparation of activities of an individual.
financial reports 4. Financial managers who
5. Skills that need excellent communication which oversee the firm’s credit business.
are needed to explain and justify complex financial 6. Financial managers deal with a
transaction. range of information and
7. Skill that Financial manager must understand documents they must stay
mathematical concepts and ideas including algebra organized to do their jobs
respectively.
Directions. Read and understand each question carefully. Write the letter of
your answer in a separate sheet of paper.
4. Who is the person involved in data analysis and profit- maximizing ideas?
A. CEO
B. Department Heads
C. Finance Manager
D. Supervisors
5. What financial skill is shown in the statement “financial statement must focus on
details”?
A. Attention to detail
B. Communication Skills
C. Math skills
D. Organizational skills
10. What type of financial manger directs the preparation and making of financial
reports?
A. Controllers
B. Credit Manager
C. Production Manager
D. Sales Manager
13. What term refers broadly to any market place where the trading of securities
occurs?
A. Financial Instrument
B. Financial Institution
C. Financial Management
D. Financial Market
14. What type of financial market does not have physical locations, and trading is
conducted electronically?
A. Bond Market
B. Money Market
C. Over-the-counter
D. Stock Market
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LINKS:
• Adam Hayes. June 7 2020. What is Finance? Retrieved July 24, 2020 from
https://www.investopedea.com/terms/f/finance.asp
• Will Kenton. (2020 March 3). Financial Markets. Retrieved July 24, 2020
from https://www.investopedea.com/terms/f/financialmarket.asp
• Adam Hayes. April 21 2020. Financial Institutions. Retrieved July 24, 2020
from https://www.investopedea.com/terms/f/financialinstitution.asp
• Will Kenton. March 29 2020. Financial Markets Instrument. July 24, 2020
from https://www.investopedea.com/terms/f/financialinstrument.asp
• Will Kenton. March 3 2020. Financial Markets. Retrieved July 24, 2020
from www.slodeshare.net/mobile/athaullah9/financial-institutions-
instruments-and-markets
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