Business Finance

COURSE DESCRIPTION:

This course deals with the fundamental

principles, tools, and techniques of the
financial operation involved in the
management of business enterprises. It
covers the basic framework and tools for
financial analysis and financial planning and
control, and introduces basic concepts and
principles needed in making investment and
financing decisions.

Cont…
CONTINUATION:

Introduction to investments and personal

finance are also covered in the course. Using
the dual-learning approach of theory and
application, each chapter and module
engages the learners to explore all stages of
the learning process from knowledge,
analysis, evaluation, and application to
preparation and development of financial
plans and programs suited for a small
business.
SUBJECT MATTER GUIDE (1st Quarter)
 How do you budget
your time and money?
Activity Time!
● In a piece of paper, fill in your answer on the table
guided by the following questions.
1. How much is your allowance for one (1) day?
2. How do you spend your allowance?
3. Do you have enough money to buy all the things you
needed?
Activity Time!
This activity shows how you budget your time and
money in a day.

You did a good job if you allocate your time and money
wisely. On the other hand, if you fall short in your budget
because you spend your money on unnecessary things,
you still need to work on your budgeting and learn to
prioritize your necessity.
An organization A term for matters
or enterprising Business regarding the
entity engaged in management,
Finance
commercial, creation, and
industrial, or study of money
professional and investments
activities
 Business
Finance

A study of management, creation, money

and investments of an organization or
enterprising entity engaged in
commercial, industrial, or professional
activities.
In Business Finance, you will
experience how to prepare,
analyze, interpret and propose a
budget that will benefit the
organization.
Requirements for Org. & Mngt.
Book report (diary)
● A report of everyday budget allocation of
money and time (monday - friday).
Event Organizers
● In cooperation with the Grade 11 students to
organize a small event during the 29th KMS
Foundation week.
Book report (diary)
Money
Date Week no. Activity Time Accomplished
Allocation

Budget: P100.00

Morning routines 6:00 - 6:20 AM - ✔

Breakfast 6:20 - 6:35 AM - ✔

Transportation 6:35 - 7:50 AM P40.00

Ex. Aug. 22, Week 1
Morning Class (Onsite) 7:00 - 1:00 PM ✔
2022 (Monday)
Transportation 1:00 - 1:15 PM P40.00

Rest 1:15 - 3:00 PM ✔

Homeworks 3:00 - 5:00 PM ✔

Savings: P20.00
Diagnostic Test

Instructions: Get a piece of paper and

answer the following questions in
CAPITAL LETTERS.
Diagnostic Test
1. Which of the following is not a service provided
by financial institutions?

a. Buying the business of customer

b. Investing customers saving in stock and bonds
c. Paying savers interest on deposited funds
d. Lending money to customers
Diagnostic Test
2. By definition, the money market involves buying
and selling of what?

a. Funds that mature in more than one year

b. Flows of funds
c. Stocks and bonds
d. Short-term funds
Diagnostic Test
3. Which of the following is created by a financial
relationship between suppliers and users of short-
term funds?

a. financial market c. stock market

b. money market d. capita market
Diagnostic Test
4. Which of the following requires funds from
external sources?

a. Financial markets c. financial institutions

b. Private placement d. all of the above
Diagnostic Test
5. Which of the following is the primary goal of
financial manager?

a. Minimizing risk c. maximizing wealth

b. Maximizing risk profit d. minimizing return
Diagnostic Test
6. Which of the following the Financial Managers
should consider when evaluating decision alternatives
or potential actions?

a. only risk
b. only returns
c. both risk and return
d. risk, return, and the impact on share price
Diagnostic Test
7. Which of the following major securities is traded in
the capital markets?

a. stocks and bonds

b. commercial paper and treasury bills
c. bonds and commercial paper
d. treasury bills and certificates of deposit
 Diagnostic Test
8. Which of the following is not one of the five basic
corporate finance functions?

A. Financial management
B. Capital budgeting
C. Risk management
D. Auditing
Diagnostic Test
9. What is the coupon payment of a 15-year $10,000
bond with a 9% coupon rate with semi-
annual payments?

A. $150.00
B. $450
C. $900.00
D. $1800.00
 Diagnostic Test
10. You are given two choices of investments, Investment A and
Investment B. Both investments have the same future cash flows.
Investment A has a discount rate of 4%, and Investment B has a discount
rate of 5%. Which of the following is true?

A. The present value of cash flows in Investment A is higher than the

present value of cash flows in Investment.
B. The present value of cash flows in Investment A is lower than the
present value of cash flows in Investment.
C. The present value of cash flows in Investment A is equal to the present
value of cash flows in Investment B.
D. No comparison can be made—we need to know the cash flows to
calculate the present value.
Answer Key:

1. A 6. C
2. D 7. D
3. B 8. D
4. B 9. B
5. D 10.A
Materials for next week
● Bring writing materials (pen and paper).
THANK YOU!