Business Finance

Activity 1:

Direction: Write your answer on 1 sheet of paper to be submitted today on or before 4:00pm via
messenger.

I.: State the function of each and every position located in the organizational chart 1 & 2 in your
lectures.

1. Board of Directors-A board of directors is a group of people who jointly supervise the activities of
an organization.

2.Chief Executive Officer(CEO)/President-A

chief executive officer (CEO) is the
highest-ranking executive in a company, whose primary responsibilities include
making major corporate decisions, managing the overall operations and
resources of a company, acting as the main point of communication between
the board of directors (the board) and corporate operations and being the public
face of the company. A CEO is elected by the board and its shareholders.
3. Chief Operating Officer(COO)- The chief operating officer (COO) is a
senior executive tasked with overseeing the day-to-day administrative and operational
functions of a business. The COO typically reports directly to the chief executive officer (CEO)
and is considered to be second in the chain of command.

4. Chief Financial Officer (CFO)- A chief financial officer (CFO) is the senior executive
responsible for managing the financial actions of a company. The CFO's duties include
tracking cash flow and financial planning as well as analyzing the
company's financial strengths and weaknesses and proposing corrective actions.

II.: Search for the meaning of the following:

1. Financial market-is the means for buying and selling of stocks, bonds, and other
financial instruments.
2. Stocks-shares of a corporation sold to investors
3. Bonds-Bonds are investment securities where an investor lends money to a company
or a government for a set period of time, in exchange for regular interest payments.
Once the bond reaches maturity, the bond issuer returns the investor’s money.
4. Money markets- market where transactions involving short term-debt securities take
place.
5. Short-term debt- one that is due and/or demandable within one year or less.
6. Capital markets- are where transactions involving long-term debt, or those maturing
in more than one year, take place.
7. Collateral- is an asset, like a piece of real estate property or a vehicle, that is
attached to a loan.
 The ROLE of Financial Intermediaries in Financial Markets:
1. Reduce Costs- Without intermediaries, it will be harder for savers and borrowers
of funds to transact with each other.
2. Diversification- Intermediaries help savers of funds lower their risk by helping
them choose the types of financial products that they will include in their
portfolio.
3. Pooling of funds- Intermediaries can pool funds from several savers in order to
grant to a single borrower a loan involving a huge sum of money.
4. Financial Flexibility- Intermediaries offer a variety of financial products to both
savers and borrowers of funds.

The Most Common Financial Instruments:

1. Savings
2. Loans
3. Bonds
4. Security
5. Treasury Bills
6. Insurance Products
7. Mutual Funds

Career in Finance
1.Banker- Someone who has just finished college or has had some special training in
finance will normally start as bank clerk and move his or her way up the corporate
ladder.

2. Broker-A broker is an individual or firm that acts as an intermediary between an

investor and a securities exchange. A broker can also refer to the role of a firm when
it acts as an agent for a customer and charges the customer a commission for its
services.

3. Financial Advisor- They give financial planning advice to both individual and corporate
clients.

4. Stockbroker-Is similar to financial advisor in the sense that he or she advices his or her
clients on matters pertaining to financial products, market, and industry trends, and
other investment options.

5. Fund Manager- Are employed by fund companies, they manage funds pooled by
several investors.
 6. Academe- If a finance professional chooses to be in academe and teach, he or she will
be required to obtain a master’s degree from Higher Educational Institutions (HEI) offering an accredited
program.

7. Corporate Consultant- Is not employed by a particular organization, he or she is

commissioned to do work on a temporary or per project basis.

8. Country Manager- Is employed by multinational firm, he or she is tasked to oversee

the operations of an affiliate in the host(foreign) country.
9. Corporate Finance Manager/Officer- His main job is financial analysis, which
encompasses risk assessment, return on different investment options, preparation
and analysis of financial statements ensuring the cost control measures are In place
in all cross-functional areas and that those are communicated to other department
heads, and treasury. A finance manager or officer reports directly to the CFO.
10. Chief Finance Officer- Is one of the members of the top management team, he or she
is often referred to as an executive. The CFO is responsible for managing all the
financial aspects of the business- investments, capital espenditures, budget
allocation, cost control measures, cash flow, and sourcing of funds.
Qualities of a Finance Professional
1. Integrity-
2. Attention to detail
3. Strong oral and written communication skills
4. Ability to multitask
5. Analytical
6. Ability to think strategically
7. Ability to use technology
8. Team player
9. Leadership
10. Flexibility