Department of Education

Region V (Bicol)
Schools Division Office of Tabaco City
TABACO NATIONAL HIGH SCHOOL
Tabaco City

2nd Summative Test – Business Finance

(Coverage: Quarter 3, Week 7-8, LAS 9-11 and Quarter 4, Week 1-4, LAS 1-4)

Name of Learner: ___________________________________ Gr and Sec: 12 ABM-_____ Score: _____

General Instructions: Read and understand each item carefully. Supply the correct and/or appropriate answer.
Answer directly on this sheet of paper. Submit this sheet of paper (hard copy only) on the scheduled retrieval.

PART I. Multiple Choice. Write the letter of the correct answer on the blank before the item number. All values
reflected are rounded to the nearest peso value or percentage number.

_____ 1. It refers to an asset or property right acquired for profit motive.

A. Investment B. Savings C. Fund D. Royalty

_____ 2. It shows the difference between the best possible return and the worst possible return but do not provide
any information about the distribution rates of return between the extremes.
A. Coefficient of Variation B. Range C. Standard Deviation D. Beta

_____ 3. It is used as a measure of the amount of absolute risk associated with an outcome and provides more
information about the risk of an asset.
A. Coefficient of Variation B. Beta C. Standard Deviation D. Range

_____ 4. It provides a quick summary of the relative trade-off between expected return and risk.
A. Standard Deviation B. Range C. Coefficient of Variation D. Beta

_____ 5. It measures the movement between a stock and the market portfolio.
A. Coefficient of Variation B. Beta C. Standard Deviation D. Range

_____ 6. Identify the method of handling risk: A businessman who wants to avoid the risk of losing his building to
fire, may do so by simply avoiding its ownership.
A. Retention B. Risk-shifting C. Risk-reduction D. Avoidance

_____ 7. Identify the method of handling risk: The risks inherent to ownership are, then, retained.
A. Retention B. Risk-shifting C. Hazard reduction D. Avoidance

_____ 8. Identify the method of handling risk: The risk is therefore transferred to another party.
A. Avoidance B. Risk-reduction C. Risk-shifting D. Loss reduction

_____ 9. It includes all financial decisions and activities of an individual including budgeting, insurance, mortgage
planning, savings, and retirement planning.
A. Business Finance B. Personal Finance C. Corporate Finance

_____ 10. It involves quantifying monetary objectives with definite time frames, prioritizing objectives, and examining
these objectives within an individual’s resources and limitations.
A. Plan Implementation B. Objective Setting C. Data Gathering D. Data Analysis

_____ 11. It may involve other financial entities to assist the individual in dealing with the parties involved in the
execution of the financial plan.
A. Plan Implementation B. Plan Monitoring C. Objective Setting D. Data Gathering

_____ 12. At this point, the individual can comment on the proposed solutions.
A. Plan Implementation B. Financial Recommendation C. Data Gathering
_____ 13. Individuals who subscribe to this notion believe that an increase in income and/or financial windfall would
solve their problems.
A. Money Avoidance B. Money Status C. Money Worship D. Money Vigilance

_____ 14. An individual may be worried about abusing credit cards or over-drafting their checking account.
A. Money Vigilance B. Money Worship C. Money Status D. Money Avoidance

_____ 15. He argues that all people can do something to better manage their financial lives, no matter what the
situation towards a clear and concrete budgeting system.
A. Dave Ramsey B. Alexa von Tobel C. Peter Dunn D. Luca Pacioli

_____ 16. Individuals who are secretive about their finances are generally exceptionally watchful and worried about
their finances.
A. Money Vigilance B. Money Avoidance C. Money Status D. Money Worship

_____ 17. This money script is associated with higher levels of credit card and other debt.
A. Money Avoidance B. Money Vigilance C. Money Status D. Money Worship

_____ 18. After you itemized the expenses, label the envelopes and fill each with the pre-determined amounts.
A. 50-20-30 System B. Envelope System C. Ideal Budget System

_____ 19. This system was developed for people who want to work towards their financial goals without depriving
themselves entirely.
A. 50-20-30 System B. Envelope System C. Ideal Budget System

_____ 20. It is the cycle that people work with as money flows through their personal world.
A. Money Making Cycle B. Money Energy Cycle C. Money Investment Cycle

For items 21 to 25

Joss Way purchases merchandise for P5,200, 2/10, N/30.

_____ 21. How much is the discount?

A. P104 B. P105 C. P102 D. P103

_____ 22. What is the discounted amount?

A. P5,069 B. P5,090 C. P5,096 D. P5,690

_____ 23. How many days payment is postponed?

A. P10 days B. P30 days C. P15 days D. P20 days

_____ 24. How many times can payment be postponed in 1 year?

A. 18x B. 20x C. P19x D. 22x

_____ 25. How much is the cost of foregoing discount, expressed in percentage?
A. 35% B. 36% C. 37% D. 38%

For items 26 to 30

Silver-Finance Corp. discounts the following notes with North Bound Co. at the rate of 18% on March 31,
2021: Note A dated March 15, 2021 for P58,000 with June 29, 2021 as maturity date. Note B dated March 1, 2021
for P66,000 to mature on May 30, 2021 bearing 14% interest.

_____ 26. How much is the discount for Note A?

A. P2,090 B. P2,160 C. P2,610 D. P2,060

_____ 27. How much is the discount for Note B?

A. P2,090 B. P2,060 C. P2,160 D. P2,900
_____ 28. What is the maturity value of Note B?
A. P66,310 B. P60,610 C. P68,310 D. P68,110

_____ 29. How much is the net proceeds of Note A?

A. P72,490 B. P60,210 C. P76,600 D. P60,610

_____ 30. How much is the net proceeds of Note B?

A. P70,400 B. P76,400 C. P72,400 D. P72,400

PART II. Complete the loan amortization schedule given the information below. USE EQUAL PRINCIPAL
PAYMENT SCHEME (EPPS).

On April 15, 2022, you obtained a P500,000 loan from LOL Development Bank at an annual rate of 7%
payable for 12 months. Payment must be made every 30th day (including holidays and Sundays) immediately
the following month.

LOL Development Bank

Loan Amortization Schedule

Fill up the required data entry:

Borrower (First Name, MI, Last Name)
Term (months)
Rate
Amount
Date Granted
First Payment Date
Last Payment Date April 10, 2023

Note: On a separate sheet of paper, compute for the amortization schedule using Equal Principal Payment Scheme
for the first 5 installments. Then, copy your answer for the required payment schedule below. The shaded cells do
not require your answer. The amount reflected must be rounded to the nearest peso value e.g. 41,666.66 is
rounded to 41,667.

Payment Date Payment Interest Principal Balance

(using EPPS)
Apr 15, 2021 500,000.00
May 15, 2021
Jun 14, 2021
Jul 14, 2021
Aug 13, 2021
Sep 12, 2021

Prepared by: Checked by:

PAULO C. MOJOS REYNALDO C. CAÑEZO JR.

Subject Teacher Subject Head, MATH/ABM Group

__________________________________ _______________________________________
Signature over Printed Name of Learner Signature over Printed Name of Parent/Guardian