UNIVERSITY OF NORTHEASTERN PHILIPPINES

SCHOOL OF GRADUATE STUDIES

IRIGA CITY
SY: 2022 - 2023

EDUCATION 209- FINANCIAL MANAGEMENT

MID-TERM EXAMINATION

NAME: RYZEL C. JACOBE Permit No: 1713

COURSE: MAED – ADMINISTRATION & SUPERVISION Date: April 22, 2023

PROFESOR: DR. ELMER V. TENA

TEST I. Cite and give your insights on the following:

1. Vision, Mission, and Goals (VMG) of UNEP Graduate Studies.

VISION: A premier Graduate School known as knowledge center for sustainable resource
development.

MISSION: UNEP Graduate Studies commits itself to produce globally competitive and
value-laden professionals in various graduate disciplines and to the advancement of
knowledge through relevant research and extension activities to enhance the capability of
stakeholders and sustainable development.

GOALS:
1. Quality and Excellence in providing graduate expertise with national and international
standards.
2. Relevance and responsive in generating and diffusing of knowledge in the broad range of
discipline focused in the training of manpower by providing professional and technical
expertise relevant and responsive to the needs of society.
3. Access and Equity in providing opportunities to qualified and deserving professionals.
4. Efficiency and Effectiveness of the Graduate School in minimizing expenses with quality
inputs and maximizing returns in terms of individual, institutional, and social benefits derived
from the Graduate Programs.

2. The contributory consequence of VMG in your personal and professional development.

Vision, Mission and Goals are concepts that can be applied to you, personally.
Personal VMG communicate the direction in which you are headed, as well as providing
some explanation for why you are choosing one direction or set of objectives over others. The
development of a personal mission and vision, and then a strategy for achieving them, are
exactly the opposite of what most people follow. We advocate looking as far into the future
as you can and deciding where you want to end up and what steps will lead you there. In that
way, your life and your career fit into some intelligent plan, and you are in control of your
own life.

The attainment of the VMG distinctly include complying with the rules and policies
of your profession and becoming a role model to your students and colleagues. It motivates
you to be a better person and creates greater life satisfaction.

TEST II. Provide your accurate comprehension on the statements below:

1. Elaborately analyze and compare the different types of financial decisions and determine
which among the three will maximize the firm’s wealth.

3 Types of Financial Decisions:

1. INVESTMENT DECISION- These are also known as Capital Budgeting

Decisions. A company’s assets and resources are rare and must be put to their utmost
utilization. A firm should pick where to invest in order to gain the highest conceivable
returns. This decision relates to the careful selection of assets in which funds will be invested
by the firms. The firm puts its funds in procuring fixed assets and current assets. When choice
with respect to a fixed asset is taken it is known as capital budgeting decision.

2. FINANCING DECISION- is important to make wise decisions about when,

where and how should a business acquire fund. Because a firm tends to profit most when the
market estimation of an organizations share expands and this is not only a sign of
development for the firm but also it boosts investor’s wealth. Consequently, this relates
to the composition of various securities in the capital structure of the company.

3. DIVIDEND DECISION- relate to the distribution of profits earned by the

organization. The major alternatives are whether to retain the earnings profit or to distribute
to the shareholders.

2. In Chapter3, Fig 3-1 is presented that shows the financial manager’s role. Describe each
role of a finance manager that will lead in achieving the goals of the firm.

Role of a Financial Manager:

1. Raising of Funds- In order to meet the obligation of the business it is important to

have enough cash and liquidity. A firm can raise funds by the way of equity and debt. It is
responsibility of a financial manager to decide the ratio between debt and equity. It is
important to maintain a good balance between equity and debt.

2. Allocation of Funds- Once the finds are raised through different channels the next
important function is to allocate the funds. The funds should be allocated in such a manner
that they are optimally used. In order to allocate funds in the best possible manner the
following point must be considered: The size of the firm and its growth capability, status of
assets whether they are long-term or short-term and mode by which the funds are raised.
 3. Profit Planning- Profit earning is one of the prime functions of any business
organization. Profit earning is important for survival and sustenance of any organization.
Profit planning refers to proper usage of the profit generated by the firm. Profit arises due to
many factors such as pricing, industry competition, state of the economy, mechanism of
demand and supply, cost and output.

4. Understanding Capital Markets- Shares of a company are traded on stock

exchange and there is a continuous sale and purchase of securities. Hence a clear
understanding of capital market is an important function of a financial manager. When
securities are traded on stock market there involves a huge amount of risk involved.
Therefore a financial manager understands and calculates the risk involved in this trading of
shares and debentures.

3. Discuss thoroughly the three (3) responsibilities of a finance manager to achieve the
financial objectives of a business entity.

Responsibilities of a Finance Manager:

1. Financial Planning- Preparing the financial plan, which projects revenues,

expenditures and financing needs over a given period.

2. Investment (spending money)- investing the firm’s funds in projects and securities
that provide high returns in relation to their risks.

3. Financing (raising money)- Obtaining funding for the firm’s operations and
investments and seeking the best balance between debt (borrowed funds0 and equity (funds
raised through sale of ownership in the business).

4. Discuss briefly and give your sights on the three (3) forms of a business organization.

3 Forms of a Business Organization:

1. Sole Proprietorship- Ina a sole proprietorship, you’re the sole owner of the
business. This type of business is straight-forward and easy to launch and there may be fewer
administrative requirements compared to a partnership or corporation. One of the most
significant disadvantages of a sole proprietorship is unlimited personal liability, meaning you
are fully responsible for any and all debts and obligations of the business. Creditors can make
claim against any assets in your name- your home, vehicle, investments- and family members
could also be liable.

2. Partnership- A partnership is a non-incorporated business created between two or

more people. It’s fairly easy and inexpensive to form this type of business and start-up costs
are usually split equally between partners. A legal agreement should be drawn up to outline
how profits will be shared. Similarly, there’s no legal separation between you and your
business. Your personal liability is unlimited, but you’re also financially responsible for any
business decisions your partner makes- so if a contract is broken or debts are incurred without
your knowledge, you’re still on the hook financially.
 3. Corporation- A corporation is a legal entity separation from its shareholders.
Corporations offer flexible structure and an ability to divide ownership with shares, but that
makes them more complex, so it’s always a good idea to speak with a lawyer before
incorporating. This type of business may also more expensive to set up than others. Your
business can be incorporated at the provincial/territorial or federal level, but either way,
corporations are closely regulated. You’ll need to keep extensive records and file
documentation annually with the government.

5. In your own analysis, which among the three (3) forms of business organizations will
sustain in this time of COVID 19/pandemic? Justify your answer with supporting basis.

For me, the form of business organizations will sustain in this time of pandemic is the
Sole Proprietorship. Because it considers operating as a sole trader if your business is small
and capital investment is minimal. Example of this, selling online. In online selling, you’re
the boss, you keep all the profits, start-up costs are low, you have maximum privacy, you
establishing and operating your business is simple (using only cellphone) and it’s easy to
change your legal structure later if circumstances change you can easily wind up your
business.