Name: Whyljyne Mary D.

Glasanay

Gr & Sec: 12 – Luca Pacioli

Subject: Business Finance

Week: 1

INTRODUCTION TO FINANCIAL MANAGEMENT

What I Know

1. B. 6. A.
2. B. 7. D.
3. B. 8. D.
4. A. 9. D.
5. C. 10. B.

What’s In

Daily Allowance - Php60.00

Daily Expense Coming to School (before pandemic):

>Multicab Fare Back and Forth - Php20.00

>Morning Snack - Php15.00
>Afternoon Snack - Php15.00

Total Daily Expense = Php50.00

Extra Money = Php60.00 – Php50.00 = Php10.00

Shortage of cash allowance is not experienced so far because of strict monitoring of

expense and not falling to stuff that you don't really need. The daily savings of Php10.00 will be
equivalent to Php50.00 per week or Php200.00 monthly which is already a significant amount and
can help my parents in their budget of daily allowance for me. Being financially literate plays a
vital role and learning it at a young age helps you make correct bigger financial decisions in the
future.
What’s New

Activity 1.1

Board of Directors

President

Vice
Vice Vice Vice
President for
President for President for President for
Administrati
Finance Finance Production
on

What’s More?

Activity 1.2

1. If the price of the share goes up to Php2,520 it means you'll have unrealized gains on an
investment that has yet to be sold, this is also known as paper profit. If then you decided to
sell your investment you'd reap your earnings from the gain.

On the other hand, if the price of the share goes down to Php1,500 per share that means the
value of your investment decreases. If the stock market is down and the investment price
drops below your purchase price, you'll have a paper loss. If you sell your investment
during this time you will get back less than you invested.
What I Have Learned

Activity 1.3

DG International Bank (DGIB)

(Bank name)

Financial management is the art and science of managing a firm’s money so that it can
meet its goals is not just the responsibility of the finance department. All business decisions have
financial consequences. My finance managers are responsible for managing an organization's
financial health and ensuring its long-term viability. They'll start by planning the bank's financial
needs. Then obtain funds, invest those funds, make dividend decisions, manage working capital,
and evaluate and understand financial statements and make a profit plan and keep track of it. Also,
my finance managers deal with that decisions that are designed to increase the value of
shareholder’s wealth value. These decisions will have an impact on the stock price and how the
market perceives the company. Financing, Investing, Operating and Dividends decisions are the
roles of my finance managers. In the making of financing decision, my finance managers will make
decisions about long-term investments and working capital financing. In making the investing
decisions, my financial managers will minimize the probability of failure, long term investments
have supported by a capital budgeting analysis. Also in operating decisions, my finance managers
will deal with the everyday operations of my company particularly on how to finance working
capital accounts such as accounts receivable and inventories. Lastly the dividend policies, finance
managers of my bank will decide if my company should distribute all profits or keep a portion and
distribute the rest. Finance is always of great importance, be it in a business or in one's everyday
life
What I Can Do

Activity 1.4

Financial Financial
Financial Market
Institution Instruments

Bond market – this

Pension Funds – this market offers
Debt Instrument – it is
funds use to received opportunities for
generally have fixed
payments from companies and the
returns due to fixed
employees and invest the government to secure
interest rates.
proceeds on their behalf. money to finance a
project or investment.

Mutual Funds – mutual

Equity Instrument –An Derivatives market – this
funds use money from
instrument that has any market involves
investors to invest in
contract that evidences a derivatives or contracts
newly issued debt or
residual interest in the whose value is based on
equity securities, they
assets of an entity after the market value of the
finance new investment
deducting all liabilities. asset being traded.
by firms.

Commercial Banks - use

the deposited funds to
Cash Instrument – they
provide commercial
are directly influenced Stock market - The stock
loans to firms and
and determined by the market trades shares of
personal loans to
markets. These can be ownership of public
individuals, and
securities that are easily companies.
purchase debt securities
transferable.
issued by firms or
government agencies.

Assessment

1. T 6. F
2. T 7. T
3. T 8. F
4. F 9. T
5. F 10. F
Additional Activities

Organizational structure of the company is important especially in the financial aspect of

the business and the particular set of people, each play a role in the decision making of the
company. Each individual is working for the interest of the person on above them. Since the
managers of the company are making decisions for the interest of the board of directors and the
board of directors do the same for the interest of the shareholders, it follows the goal of each
individual in a corporate organization should have an objective of shareholders wealth
maximization.