DEBT FINANCING
is being done through borrowing, whether short-term or
long-term, and it usually comes with interest.
-Common debt financing arrangements include bank loans,
issuance of debt instruments like bonds, financing from
nonbank institutions like lending companies and cooperatives,
assignment of accounts receivable, and selling of notes
receivables.
EQUITY FINANCING
refers to the sale of ownership interest, most often
represented by shares, to raise fund for business purposes.
-Common Equity financing arrangements include funds raise
by the entrepreneur or business owner from friends and
family, capital infusion through direct sale of shares or
through initial public offerings, and financing by private
companies
SHORT-TERM FINANCE
- refers to financing needs for a small period normally less
than a year. In businesses, it is also known as working capital
financing.
- In most cases, it is used to finance all types of inventory,
accounts receivables etc. At times, only specific one time
orders of business are financed.
- Short-term financing is debt scheduled to pay within a year
while long-term financing is debt paid in more than a year.
SOURCES OF SHORT-TERM FINANCE
TRADE CREDIT
-A firm customarily buys its supplies and materials on credit
from other firms, recording the debt as an account payable.
-This trade credit, as it is commonly called, is the largest
single category of short-term credit.
COMMERCIAL BANK LOANS
-Commercial bank lending appears on the balance sheet as
notes payable and is second in importance to trade credit as
a source of short-term financing.
-As a firm’s financing needs grow, banks are called upon to
provide additional funds. A single loan obtained from a bank
by a business firm is not different in principle from a loan
obtained by an individual.
-The firm signs a conventional promissory note. Repayment is
made in a lump sum at maturity or in installments
throughout the life of the loan.
COMMERCIAL PAPERS
-Commercial paper, a third source of short-term credit,
consists of well-established firms’ promissory notes sold
primarily to other businesses, insurance companies, pension
funds, and banks.
SECURED LOANS
When loans are secured by inventory, the lender takes title
to them. He may or may not take physical possession of them.
Under a field warehousing arrangement, the inventory is
under the physical control of a warehouse company, which
releases the inventory only on order from the lending
institution. Canned goods, lumber, steel, coal, and other
standardized products are the types of goods usually covered
in field warehouse arrangements.
LONG-TERM FINANCE
-The funds which are not paid back within a period of less
than a year
-Certain long term finance options directly form a part of the
permanent capital of the firm. In such cases, the repayment
obligation does not even arise.
-The primary purpose of obtaining long-term funds is to
finance capital projects and carrying out operations on an
expansionary scale.
SOURCES OF LONG-TERM FINANCE
EQUITY
-Equity is the foremost requirement at the time of floatation
of any company. They represent the ownership funds of the
company and are permanent to the capital structure of the
firm.
-The equity can be private or public. Private equity is raised
from institutional or high net worth individuals. Public equity
is raised by issuing shares to the public at large which are
subscribed to by retail investors, mutual funds, banks and a
pool of other investors.
BONDS
-Bonds are debt instruments involving two parties- the
borrower and the lender. The borrower can be the
government, a local body or a corporation.
-Bonds are normally issued against collateral and are
therefore a highly secured form of long term finance.
TERM LOANS
-Term loans are borrowings made from banks and financial
institutions.
-Such term loans may be for the medium to long term with
repayment period ranging from 1 to 30 years. Such long term
finance is generally procured to fund specific projects
(expansion, diversification, capital expenditure etc.)
SHORT-TERM vs LONG-TERM FINANCING
The most important difference between the two types of
financing is the time period, the purpose and the cost of
financing. The time period is simple to understand. Short-
term financing is normally for less than a year and long-term
could even be for 10, 15 or even 20 years. The purposes are
totally different for both types of financing. Short-term
financing is normally used to support the working capital gap
of business whereas the long term is required to finance big
projects, PPE, etc. The third thing is the cost of financing
which is higher in case of short-term and comparatively lower
in case of long-term barring abnormal economic conditions.
CONCEPT OF INVESTMENT
Investment is an asset purchased with the expectation that
it will generate income or appreciate overtime.
Making an investment is a way to increase the amount of
money an investor has by placing the money in a financial
security.

Autonomous investment is a type of investing activity that is

outside the scope of shifts in national income or output, and
has no more to do with changes in governmental policies or
the desire to invest in emerging technologies.

Induced investment is positively related to the income level.

That is, at high level of income entrepreneurs are induced to
invest more and vice-versa.
It is a type of capital investment that is influenced by what
type of shifts in the economy is currently occurring

Financial investment is a money invested for buying of new

shares and bonds as well as debentures have a positive
impact on employment level. Production and economic
growth.

Real Investment in new machine tools, plant and purchased

factory buildings, etc. increases employment, production and
economic growth of the nation. Thus real investment has a
direct impact on employment generation, economic growth,
etc.

Planned Investment can also be called as Intended

investment because an investor while making investment
make a concrete plan of his investment.

Unplanned Investment is an investment without making any

concrete plans.

Net Investment It is a reflection of the amount of money a

company is spending to finance its operation.

Gross Investment is used to express the total investment for

nearly every business asset.

SOCIALIZATION is a continuing process whereby an individual
acquires a personal identity and learns
the norms, values, behavior, and social skills appropriate to
his or her social position. Socialization can be
described from two points of view: objectively and
subjectively (Palispis, 2007p. 108)
OBJECTIVE
It refers to the society acting upon a children.
SUBJECTIVE
The process by which society transmits its culture from
generation to the next adapts the individual to the accepted
approved ways of organized social life.
AGENTS OF SOCIALIZATION
-these refer to the various social groups or social institutions
that play a significant role in introducing and integrating the
individual as an accepted and functioning member of society
(Banaag, 2012 p.138).
FAMILY is the first agent of socialization. Mothers and fathers,
siblings and grandparents, plus members of an extended
family, all teach a child what he or she needs to know.
PEER GROUP is made up of people who are similar in age and
social status and who share interests.
SCHOOLS socialize children by teaching them their formal
curricula but also a hidden curriculum that imparts the
cultural values of the society in which the schools are found.
One of these values is the need to respect authority, as
evidenced by these children standing in line.
WORKPLACE is another agent of socialization. A place (such
as a shop or factory) where work is done.
RELIGION is belief in a god or in a group of gods Many people
turn to religion for comfort in a time of crisis. an organized
system of beliefs, ceremonies, and rules used to worship a
god or a group of gods. There are many religions, such as
Buddhism, Christianity, Hinduism, Islam, and Judaism.
GOVERNMENT is the system or group of people governing an
organized community, generally a state.
MASS MEDIA means of communication that reach large
numbers of people in a short time, such as television,
newspapers, magazines, and radio.
SOCIAL STATUS refers to the position an individual occupies
in society and implies an array of rights and duties (Linton,
1936 p.113). Relate to status is a social role that involves the
pattern of expected behavior in a social relationship with one
or more persons occupying other statuses (Panopio, 1994
p.97). Social Statuses can be classified into two (Please see
the diagram).
ACHIEVED STATUS
-Status that an individual earns or chooses and that reflects
their skills, abilities, and efforts
ASCRIBED STATUS
-Status that an individual is born with or otherwise assigned
and has no control over
CONFORMITY
the process whereby people change their beliefs, attitudes,
actions, or perceptions to more closely match those held by
groups to which they belong or want to belong or by groups
whose approval they desire.
COMPLIANCE
THIS INVOLVES 'GOING ALONG WITH OTHERS IN TERMS OF
BEHAVIOUR OR ATTITUDES.
IDENTIFICATION
THIS INVOLVES CHANGE ATTITUDE/BEHAVIOUR TO MATCH
THE GROUP BUT ONLY ON A TEMPORARY BASIS.
INTERNALIZATION
THIS INVOLVES A LONGER TERM CHANGE OF BEHAVIOUR
AND ATTITUDE.
DEVIANCE
Deviance refers to rule-breaking behaviour of some kind
which fails to conform to the norms and expectations of
a particular society or social group. Deviance is closely
related to the concept of crime, which is law breaking
behaviour. Criminal behaviour is usually deviant, but not all
deviant behaviour is criminal
What is Social Control of Deviance?
-Social control refers to ways in which a society tries to
prevent and sanction behavior that violates norms.
HUMAN RIGHTS
Human rights are natural rights of all human beings whatever
their nationality, religion, ethnicity, sex, language, and color.
We are equally entitled to our human rights without
discrimination. Hence, human rights are inalienable rights
that protect our dignity as human beings.
Natural Rights – there are inherent to man and given to him
by God as a human being. Examples of these
rights are the right to live, love, and be happy.
Constitutional Rights – these are the right guaranteed under
the fundamental charter of the country. Examples of these
rights are the rights against unreasonable searches and
seizures, the rights bill of attainder, and the rights
safeguarding the accused under the Bill of Rights.
Statutory Rights – these are rights provided by the
lawmaking body of a country or by law, such as the rights to
receive a minimum wage and the rights to a preliminary
investigation.
Civil Rights – these are rights specified under the Bill of
Rights, such as freedom of speech, right to information.
These are rights enjoyed by an individual by virtue of his
citizenship in a state or community.
Economic Rights – these are rights to property, whether
personal, real, or intellectual. Some examples of these rights
include the following: the right to use and dispose of his
property, the right to practice one’s profession, and right to
make a living.
Political Rights – these are rights an individual enjoys as a
consequence of being a member of a body politic. Some
examples of political rights are the following: the right to
vote and the right to be voted into public office.
L3: SOCIAL MOVEMENTS
SOCIAL MOVEMENTS
are organized collective activities that bring about or
resist fundamental changes in an existing group or society
(Benford 1992 as quoted by Schaefer 2005).
BROAD TYPES OF SOCIAL MOVEMENT
Personal Transformation
aim to change individuals. Movement lIke this encourage
members to change their outlook in life, beliefs and even try
to help them redefine their lives.
Reactionary
A reactionary movement advocates the restoration of
a previous state of social affairs, while a progressive
movement argues for a new social arrangement.
Revolutionary
This type of movement is designed to a create
revolution against the government.
SOCIAL MOVEMENTS THEORIES
• Resource Mobilization Theory
• Political Process Theory
• New Social Movement Theory
• Mass Society Theory
• Deprivation Theory
• Culture Theory
1. POLITICAL OPPORTUNITIES
Political opportunities or opportunities for intervention and
change within the existing political system exist when the
system experiences vulnerabilities.
2. MOBILIZING STRUCTURES
refer to the already existing organizations (political or
otherwise) that are present among the community that
wants change. ex. Church, Schools, and Non-profit
Organizations.
3. FRAMING PROCESSES
are carried out by leaders of an organization in order to allow
the group or movement to clearly and persuasively describe
the existing problems, articulate why change is necessary,
and what changes are desired.
NEW SOCIAL MOVEMENT THEORY
• It is a social and cultural explanation of the development of
social movements that conceptually links culture, ideology,
and identity to explain how new identities are forged within
social movements.
MASS SOCIETY THEORY
• This theory explains that social movements develop
when people who lack established social ties are
mobilized into social movements.
• Mass society theory argues that with industrialization
and subsequent social changes, people have
become isolated and alienated
DEPRIVATION THEORY
• In this story, people who are experiencing relative
deprivation begin social movements.
CULTURE THEORY
• People are drawn to a social movement by
cultural symbols that define some cause as just.
SOCIAL STRATIFICATION
• Is a society’s categorization of people into socio economic
strata, based on their occupation and income, wealth and
social status or derived power.
SOCIAL INEQUALITIES
It is characterized by the existence of unequal
opportunities and rewards for different social
positions or statuses within a group or society.
INEQUALITY OF CONDITIONS
It refers to the unequal distribution of
income, wealth, and material goods.

• UPPER CLASS INEQUALITY OF OPPORTUNITIES

• MIDDLE CLASS It refers the unequal distribution of life chances across
• LOWER CLASS individuals. This is reflected in measures such as level of
education, health status, and treatment by the criminal
STATUS justice system.
the position of an individual in relation to
another or others, especially in regards to EXAMPLES:
social or professional standing. ECONOMIC INEQUALITIES
GENDER INEQUALITIES
PRESTIGE RACIAL AND ETHNIC INEQUALITIES
It refers to the reputation or esteem associated with one’s
position in society, which is closely tied to their social class.
Prestige is pertaining to the evaluation of your status.

ESTEEM
It refers to the assessment of our role behavior. The
measures of esteem depends on how well we carry out our
role. For example if we performed well, get an outstanding
rating as an employee and granted an academic scholarship
to college, you gained a high esteem.

SOCIAL CLASS
-A group of people within a society who possess the same
socioeconomic status.

SOCIAL MOBILITY
It refers to the movement of individuals or groups in social
positions over time. Most commonly, social mobility refers to
the change in wealth and social status of individuals or
families.

HORIZONTAL MOBILITY
is the movement of a person within a social class level. It
means horizontal mobility is a movement of a person from
one position to another within the same social level, as when
someone changes between two equally prestigious
occupations.

VERTICAL MOBILITY
It is the movement of the person within a social level; the
movement may be upward or downward. In other words in
vertical mobility movement, the person may either rise or fall
in the social class structure.

Inter-generational mobility happens when the social position

changes from one generation to another. The change can be
upward or downward. For example, a father worked in a
factory while his son received an education that allowed him
to become a lawyer or a doctor.

The intra-generational change in societal position occurs

during the lifespan of a single generation. It can also refer to
a change in position between siblings.