Name: Chavez, Briege Tanya Cuartocruz Grade: 12-ABM

Subject: Business Finance

Answer the following in a one (1) whole sheet of paper.

1. Give at least three important reasons why the board of directors is the highest
policy-making body in the corporation?

The Board of Directors, which serves as the company's executive body,

monitors whether corporate activities are successful enough to meet shareholders'
expectations. It serves as a sort of internal government, enforcing rules and
regulations throughout. The Board of Directors is being recognized as the highest
policy-making body in the corporation for the following three reasons: First, it
establishes the company's objectives and goals. They are the ones that have
idealized images of their company or organization in their heads. They are the ones
who track the operation of the company to maintain morality, openness, and
connectedness for the advantage of the stockholders. Second, they are in charge of
developing the budgets that the company will utilize. The third is that they are the
ones that check the system for the business as a whole. This encompasses the
company's risk management and financial divisions. In summation, the Board of
Directors oversees every aspect of the business, including the company's financial
planning, guidelines, tactics, and aims and objectives, making it the highest policy-
making body in the firm.

2. How is Economics related to Business Finance?

We must first broaden our understanding of finance and economics before

we focus on the core question. Customers, shoppers, investors, workers, and
marketplaces are all topics covered by the field of economics. It also covers the
products and services that the general populace uses. Finance, on the other hand,
deals with how money is managed or utilized to pay for products and services. It
covers banks, investing, credit, and money. Services and goods are tied to
economics. Finance involves money. They can be linked together by saying that you
need money to buy things. To have money, you must have products. Despite the fact
they aren't the same, finance and economics are closely related because they both
involve money. Economics is focused on the overall state or the distribution of
resources. The tools used to manage money are more the emphasis of finance. They
aren't comparable. However, investors, businesses, and stockholders utilize them to
assess the risk and return of the organization.
3. Why is Accounting connected to Business Finance?

Accounting can only aid with the analysis of financial facts and decision-
making over how to run a business or organization most effectively. Accounting and
finance are related to one another because of this. Accounting is also the language
of business, which makes it easier for outsiders to comprehend what goes on inside
a company. There are distinct managements for finance and accounting. Accounting
will present the organization's monetary report and findings or income statements.
The data from the accounting field is analyzed and strategically planned for by
finance, in contrast.

4. Define Finance and clarify why it is said to be both a science and an art.

The handling of money and other financial operations, including investing,

borrowing, lending, and budgeting, are referred to as finance. It is the methodical
procedure of obtaining capital or funding for any budget or expenses. Finance is an
art since it involves the creativity and uniqueness of a person's financial behavior.
Statistics, scientific data, mathematics, and mathematical formulas are all used in
finance, making it a scientific discipline. Overall, it has to do with the creativity and
analytical abilities required for the proper method of managing money.

5. What is the significance of an organizational structure in a business organization?

The organizational structures place a greater emphasis on a company's

managerial department. Its importance lies in the fact that by making high-end
decisions, they are assisting most organizations in running efficiently. It offers
concise, detailed advice regarding particular authority. By giving the staff clear
information, it increases the efficiency of the processes.
 Performance Task #1

Directions: Below are quotes from CEOs of business organizations. Give your insights in
every quote based on what you have read. Use a separate sheet in answering.

1. "Finance plays a critical role across every aspect of our business. We enable the
business to turn our ambition and strategy into sustainable, consistent and superior
performance". - Jean Marc Huet Unilever

- This quote emphasizes the use of finances to achieve the aims and objectives set in
order to get successful performance. Additionally, it emphasizes the significance of
the finance division and its crucial function throughout the entire company. It asserts
that because of finance, it ensures the smooth operation of the company's financial
aspects. It helps the business transform its goals and strategy into exceptional
performance.

2. “It is very exciting because you are not just thinking of today but what the company
will need in the future.”- Yael V. Baysa of Jollibee

- Business is dynamic, as I've mentioned. Every time, the business world is altered. We
foresee ongoing changes, both within and outside of the company. You have to plan
for the future while running a business, and I believe that's what makes it fascinating
since you get to try new things on a daily basis. Similar to moving through multiple
phases, you must take something from each phase and use it in the next decision-
making process or add it to it.

As you envision the strategic planning, goals, and objectives, it also improves your
ability to plan and visualize. It will undoubtedly aid in the development of skills that
go beyond specialization and encourage the desire to learn and solve any problems
that may arise.

3. “Yesterday’s solutions are never adequate for the future.” - Albert De Larrazabal of
Globe Telecom

- My own perspective is that yesterday's solutions are ones that were created in the
past, and the company won't benefit if they are continued to be used in the future
because every time the company makes a move, another change must be taken into
account. A company features dynamic operations. Every time, every strategy, every
plan, every approach, alters or evolves.
- This also underlines the reality that unadjusted and unimproved solutions will never
be able to appropriately address the company's future conditions. The company will
never benefit from past situational solutions without any recommendations or
updated alternatives. A business shouldn't just adhere to a strategy that has been
employed several times. Some companies or organizations fail to achieve a great
and improved operation within their business because they do not acknowledge or
permit recommendations and they don't enhance their goals/objectives, even though
this is the reason why their company is at risk. Such unimportant but necessary
aspects are often avoided by them.

4. “Now we don’t go out because we need funds. We go out because it’s an

opportunity.” - Jose T. Sio SM Corporation

- This, in my perspective, shows that reaching outside the company is not just about
getting funding; it's also about looking at opportunities. You gain a variety of benefits
when you seek out opportunities. You will benefit from these advantages as well as
the financial portion of the company. Therefore, if you choose to explore, it provides
you several advantages—not just in one part of the business, but also in terms of the
entire business.

- Other views include the notion that venturing out or exploring involves seeking for
opportunities for the firm, not just assets. Analyzing current business processes and
areas for improvement may be included. The many technologies, resources, and
other operational tools for organizations that need to evolve could also be a
consideration.