BUSINESS FINANCE

Grade 12-Love (ABM)

On a sheet of paper (1/4), answer the following questions:
• A. How much is your daily allowance? If not given daily,
how much is your average allowance per day?
• B. Write down all the items you spend your money with or
all the expenses. List the description and peso amount
spent.
• C. Compute for the balance of your allowance by deducting
the expenses you listed from your daily allowance.
• D. If the answer to Question C is positive, what do you do
with the money left? If the answer is negative, where do you
get additional money?
What is FINANCE?
•Finance can be defined
as the science and art of
managing money.
• (Gitman & Zutter, 2012)
The activity you performed is called budgeting.

• Budgeting is the act of

estimating revenue (in the form of
your allowances) and expenses
over a period of time (in this case,
on a daily basis).
Sources of Funds
• Have you ever been in a situation
where you are short of cash? What
would you do? Where are you going
to get extra cash? What other
sources of cash do you know?
Possible answers:
• • Ask from parents
• • Borrow from a friend
• • Fund raising activities
• • Pawnshops
• • 5/6
• • Banks
Finance is concerned with decisions about:
• How much of your earnings you spent?
• How much do you need and save?
• How will you invest your savings?
• How will you raise additional funds if you
are short of funds?
 Forms of Business Organizations:
• Sole Proprietorship - A business owned
by one person and operated for his or her
own profit.
• Partnership - A business owned by two
or more people and operated for profit.
• Corporation – An entity created by law
owned by shareholders.